Juan paid the following amounts of interest in 2016: $150 on his personal credit card
$9,500 on his home mortgage
$750 on a personal car loan,which was not used for business
$350 on funds borrowed to purchase tax-exempt securities
What is his deductible interest for 2016?
A)$350.
B)$9,850.
C)$1,250.
D)$9,500.

Question

Quizplus · Accepted Answer

Only the interest paid on Juan's home mortgage is deductible. Therefore, the deductible interest for 2016 is $9,500. The other amounts of interest are not deductible.

Juan Paid the Following Amounts of Interest in 2016: $150