Juan paid the following amounts of interest in 2014: $150 on his personal credit card
$9,500 on his home mortgage
$750 on a personal car loan,which was not used for business
$350 on funds borrowed to purchase tax-exempt securities
What is his deductible interest for 2014?
A)$ 350.
B)$1,250.
C)$9,500.
D)$9,850.

Question

Quizplus · Accepted Answer

The only deductible interest in this scenario is the $9,500 paid on the home mortgage, as personal credit card interest, personal car loan interest, and interest on funds borrowed to purchase tax-exempt securities are not deductible.

Juan Paid the Following Amounts of Interest in 2014: $150