TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 2) A building used in a trade or business is a capital asset. a 2) 4) Qualified residence interest must be acquisition indebtedness and be secured by the residence. 4) ) 8) 8) While points paid to purchase a residence are deductible as interest in the period paid, points associated with the refinancing of a residence must be amortized and deducted over the life of the loan. 12) 12) Generally, expenses incurred in an investment activity other than those incurred to produce rent and royalties are deductions from AGI