Which of the following interest expense amounts is not deductible in 2019?
A)Education loan interest of $2,000, assuming the taxpayer is single and has income of $150,000.
B)Home equity loan interest of $9,000 on a loan of $100,000, the proceeds of which were used to purchase an addition to the taxpayer's primary residence.
C)Investment interest expense of $10,000, assuming the taxpayer has $15,000 of net investment income.
D)Points of $2,000 paid on a mortgage loan for the purchase of a new principal residence.

Question

Quizplus · Accepted Answer

Education loan interest deduction is phased out for single filers with modified adjusted gross income (MAGI) between $70,000 and $85,000 in 2019. Since the taxpayer's income is $150,000, they exceed the phase-out limit and cannot deduct the education loan interest.

Which of the Following Interest Expense Amounts Is Not Deductible