Which of the following is a true statement?
A)For purposes of the deduction for educational interest,expenses do not include expenses for room,board and travel.
B)For purposes of the deduction for educational interest,qualified education expenses are those paid for the education of the taxpayer,the taxpayer's spouse,or a taxpayer's dependent.
C)The maximum deduction for interest expense on qualified education loans is $6,000.
D)A penalty paid for prematurely withdrawing a certificate of deposit or similar deposit is deductible as an investment expense.
E)All of these are falsE.Penalties for early withdrawal are deductible for AGI.

Question

Quizplus · Accepted Answer

For purposes of the deduction for educational interest, qualified education expenses are those paid for the education of the taxpayer, the taxpayer's spouse, or a taxpayer's dependent. Room, board, and travel expenses are not considered qualified education expenses for the purpose of this deduction. The maximum deduction for interest expense on qualified education loans is $2,500, not $6,000. Penalty paid for prematurely withdrawing certificates of deposit or similar deposits is not deductible as an investment expense.

Which of the Following Is a True Statement