Question
1) Which of the following is NEVER deductible on Schedule A? A) Home mortgage interest paid on a second home. B) Interest paid on money
1) Which of the following is NEVER deductible on Schedule A?
A) Home mortgage interest paid on a second home.
B) Interest paid on money borrowed to buy stock for an investment portfolio.
C) "Points" paid in advance at the time of securing a mortgage for a taxpayer's main residence.
D) Credit card interest paid on personal purchases
2) A self-employed taxpayer may be eligible to deduct amounts paid for medical insurance for themselves and for their families. To claim this deduction, a qualifying taxpayer should:
A) Deduct the cost of the health insurance premiums as a business expense on Schedule C.
B) Only deduct the health insurance costs on Schedule A if they itemize their deductions.
C) Claim a nonrefundable tax credit based on the cost of the insurance.
D) Include the costs as an adjustment to income on Schedule 1 (Form 1040), up to the amount of net business income.
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