TXX5768

Which of the following statements is false?

	A.	Prepaid interest generally must be capitalized and amortized rateably over the term of the loan with exception of certain points paid on a taxpayer's principal residence mortgage.
	B.	Interest paid on a loan used by the taxpayer to finance the construction of a commercial building may be deducted in the year paid by a cash basis taxpayer.
	C.	Investment interest does not include debt allocable to rental real estate in which the taxpayer materially participates or interest covered under the passive activity loss rules.
	D.	Interest paid on loans to purchase vacant land held as an investment is classified as investment interest and is deductible only up to the amount of investment income the taxpayer has in the current year.