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) A penalty paid for prematurely withdrawing a certificate of deposit or similar deposit is deductible as an investment expense.
D) The maximum deduction for interest expense on qualified education loans is $6,000.
E) All of the choices are false.

Question

Quizplus · Accepted Answer

The deduction for educational interest is only available for qualified education expenses 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 this deduction. The other statements are false.

Which of the Following Is a True Statement