To deduct interest paid with respect to indebtedness, the taxpayer must be legally liable for the debt.

Name: To deduct interest paid with respect to indebtedness, the taxpayer must be legally liable for the debt.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

To deduct the interest paid on a debt, the taxpayer must have a legal obligation to pay it. Simply paying someone else's debt or providing financial assistance does not qualify for interest deduction.

To Deduct Interest Paid with Respect to Indebtedness, the Taxpayer