Amy paid the following interest expense during the current year: $\begin{array}{ll}
\text { Qualified home mortgage interest } & \$ 5,000 \
\text { Credit card interest } & \$ 1,000 \
\text { Personal bank loan interest } & \$ 3,000
\end{array}$
What is the amount of Amy's interest deduction for the current year?
A)$8,000
B)$3,000
C)$4,000
D)$5,000
E)$6,000

Question

Amy paid the following interest expense during the current year: $\begin{array}{ll}
\text { Qualified home mortgage interest } & \$ 5,000 \
\text { Credit card interest } & \$ 1,000 \
\text { Personal bank loan interest } & \$ 3,000
\end{array}$
 What is the amount of Amy's interest deduction for the current year?
A)$8,000
B)$3,000
C)$4,000
D)$5,000
E)$6,000

Quizplus · Accepted Answer

Amy can deduct the $5,000 qualified home mortgage interest. Credit card and personal bank loan interest are not deductible personal interest expenses.

Amy Paid the Following Interest Expense During the Current Year