Question
Which of the following types of interest expense generally is not deductible to any extent? a. Interest expense attributable to a $35,000 second mortgage on
Which of the following types of interest expense generally is not deductible to any extent? a. Interest expense attributable to a $35,000 second mortgage on the taxpayers principal residence. (The proceeds of the loan were used to purchase an automobile used solely for personal purposes.) b. Interest expenses attributable to a $90,000 debt secured by a principal residence. (The proceeds of the debt, which exceed the original cost of the home, were used to pay for a vacation.) c. Interest expense attributable to a $29,500 debt incurred to finance the purchase of an automobile. (The car was used by a self employed person solely for business.) d. Interest expense attributable to debt incurred to finance the purchase of tax exempt securities. e. Interest expense attributable to a $85,000 debt. (The proceeds of the loan were used to purchase Ford Motor Co. stock, and the taxpayers interest income and dividends received from the stock exceed the interest expense on this loan.) f. More than one of the above.
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