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

Question

Quizplus · Accepted Answer

The deduction for educational interest is limited to interest paid on qualified education loans for the education of the taxpayer, the taxpayer's spouse, or a taxpayer's dependent. Room, board, and travel expenses are not included in qualified education expenses. Options A, C, and D are all false statements.

Which of the Following Is a True Statement