Tor F 1. For 2020, the amount of the student loan interest deduction is limited to $2,500. Tor F Tor F 2. Under a divorce agreement executed in 2017, periodic payments of either cash or property must be made at regular intervals to be deductible as alimony. 3. With a Health Savings Account (HSA), contributions grow tax free, however distributions used for to pay for medical expenses are taxable. 4. The cost of a prescription cough medicine is a deductible medical expense. 5. Taxpayers can deduct qualified residence interest on their principal residence and on a second residence selected by the taxpayer if debt is $750,000 or less. Tor F Tor F Tor F 6. To deduct a charitable contribution, taxpayers must contribute cash to the charity. Tor F 7. Fines paid that are ordinary, necessary and reasonable in a trade or business are not deductible. Tor F 8. The luxury auto limits on depreciation must be reduced if business use is less than 100% Tor F 9. The standard mileage rate does not include parking fees, tolls, and property taxes on the vehicle Tor F 10. Transportation costs are deductible when a taxpayer goes from home to his or her regular workplace