Which of the following is a true statement?

A.

Interest expense is deductible if the loan is used to purchase municipal bonds.

B.

One half of the cost of business meals is not deductible.

C.

A loss deduction from a casualty of a business asset is only available if the asset is completely destroyed.

D.

Although expenses associated with illegal activities are not deductible, political contributions can be deducted as long as the donation is not made to a candidate for public office.

E. Fines paid for violations of the law is deductible for tax.