The Browns borrowed $20,000 secured by their home, to purchase a new automobile. At the time of the loan, the fair market value of their home was $400,000, and it was unencumbered by other debt. The interest on the loan qualifies as
a. Deductible personal interest.
b. Deductible qualified residence interest.
c. Nondeductible interest.
d. Investment interest expense.
Answer: B
Tax
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- Income in respect of a cash-basis decedent
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