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Under the 1986 tax law, interest payments on a refinanced

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Under the 1986 tax law, interest payments on a refinanced [#permalink] New post 21 Mar 2009, 10:25
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

59% (01:43) correct 40% (00:56) wrong based on 411 sessions
Under the 1986 tax law, interest payments on a refinanced home loan are deductible only if the amount of the loan does not exceed the purchase price of the home, the cost of improvements, and any additional amount borrowed against the home to pay for medical or educational expenses.

(A) any additional amount borrowed against the home to pay for medical or educational expenses
(B) borrowing any additional amount against the home for payment of medical or educational expenses
(C) also borrowing any additional amount against the home to pay for medical or educational expenses
(D) any additional payment of medical or educational expenses that were borrowed against the home
(E) any additional payment borrowed against the home for medical or educational expenses
[Reveal] Spoiler: OA

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Re: SC-Under the 1986 tax law [#permalink] New post 21 Mar 2009, 10:43
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IMO A.

nitya34 wrote:
Under the 1986 tax law, interest payments on a
refinanced home loan are deductible only if the
amount of the loan does not exceed the purchase
price of the home, the cost of improvements, and any
additional amount borrowed against the home to pay
for medical or educational expenses.


(A) any additional amount borrowed against the
home to pay for medical or educational expenses
- Good
(B) borrowing any additional amount against the
home for payment of medical or educational
expenses
-- Parallelism requires noun after "and"
(C) also borrowing any additional amount against the
home to pay for medical or educational expenses
-- Parallelism requires noun after "and"
(D) any additional payment of medical or educational
expenses that were borrowed against the home
- expanses never borrowed
(E) any additional payment borrowed against the
home for medical or educational expenses

- payment can't be borrowed
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Re: SC-Under the 1986 tax law [#permalink] New post 21 Mar 2009, 10:48
nitya34 wrote:
Under the 1986 tax law, interest payments on a
refinanced home loan are deductible only if the
amount of the loan does not exceed the purchase
price of the home, the cost of improvements, and any
additional amount borrowed against the home to pay
for medical or educational expenses.


(A) any additional amount borrowed against the
home to pay for medical or educational expenses
(B) borrowing any additional amount against the
home for payment of medical or educational
expenses
(C) also borrowing any additional amount against the
home to pay for medical or educational expenses
(D) any additional payment of medical or educational
expenses that were borrowed against the home
(E) any additional payment borrowed against the
home for medical or educational expenses



A

"...doest not exceed X,Y, and Z.
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Re: SC-Under the 1986 tax law [#permalink] New post 21 Mar 2009, 11:22
I found this question good one...
Sentence says that "interest payments on loan are deductible only if the amount of the loan does not exceed the purchase price of the home, the cost of improvements.
If we see the coloured clauses they indicate that we are talking in terms of some amount, i.e the structure would be parallel if we talk in terms of amount in every clause. Thus B and C are out. E says "payment borrowed"...I am sorry as far as I know payments are always made they can never be borrowed.For me it is out for this reason. D wrongly says that expenses were borrowed...hence out..So A is my answer.
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Re: SC-Under the 1986 tax law [#permalink] New post 21 Mar 2009, 11:57
Hi mates,

IMO A

B out: changes de meaning of the sentence
C out: same as in B
D out: the tense is not correct, it should be present perfect. Also, "payments" cannot be borrowed
E out: "payments" cannot be borrowed

OA and Source?

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Re: SC-Under the 1986 tax law [#permalink] New post 24 Mar 2009, 13:33
nitya34 wrote:
Under the 1986 tax law, interest payments on a
refinanced home loan are deductible only if the
amount of the loan does not exceed the purchase
price of the home, the cost of improvements, and any
additional amount borrowed against the home to pay
for medical or educational expenses.


(A) any additional amount borrowed against the
home to pay for medical or educational expenses
(B) borrowing any additional amount against the
home for payment of medical or educational
expenses
(C) also borrowing any additional amount against the
home to pay for medical or educational expenses
(D) any additional payment of medical or educational
expenses that were borrowed against the home
(E) any additional payment borrowed against the
home for medical or educational expenses


A doesn't seem to have any issues. will wait for the OA.
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Re: SC-Under the 1986 tax law [#permalink] New post 27 Mar 2009, 09:01
nitya34 wrote:
Under the 1986 tax law, interest payments on a
refinanced home loan are deductible only if the
amount of the loan does not exceed the purchase
price of the home, the cost of improvements, and any
additional amount borrowed against the home to pay
for medical or educational expenses.


(A) any additional amount borrowed against the
home to pay for medical or educational expenses
(B) borrowing any additional amount against the
home for payment of medical or educational
expenses
(C) also borrowing any additional amount against the
home to pay for medical or educational expenses
(D) any additional payment of medical or educational
expenses that were borrowed against the home
(E) any additional payment borrowed against the
home for medical or educational expenses



IMO A).
amount of the loan does not exceed any additional amount borrowed against - amount does not exceed amount (it cannot be payment). logical parallism.
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Re: SC-Under the 1986 tax law [#permalink] New post 24 Mar 2010, 03:15
[quote="nitya34"]Under the 1986 tax law, interest payments on a refinanced home loan are deductible only if the amount of the loan does not exceed the purchase price of the home, the cost of improvements, and any additional amount borrowed against the home to pay for medical or educational expenses.

(A) any additional amount borrowed against the home to pay for medical or educational expenses
(B) borrowing any additional amount against the home for payment of medical or educational expenses
(C) also borrowing any additional amount against the home to pay for medical or educational expenses
(D) any additional payment of medical or educational expenses that were borrowed against the home
(E) any additional payment borrowed against the home for medical or educational expenses

[Reveal] Spoiler: OA
A
[/quote
listing in B and C are not parallel - X, Y and Z
left with A, D, and E:
E: "payments" were borrowed against home.....WRONG
D: uses a passive tone; also it says "payments" were borrowed...WRONG
A: properly structured; parallel listing: X, Y, and Z (borrowed against the home...) CORRECT
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Re: SC-Under the 1986 tax law [#permalink] New post 09 Sep 2010, 09:49
was too quick to pick E....my bad.
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Re: SC-Under the 1986 tax law [#permalink] New post 09 Sep 2010, 14:50
Same as seekmba. Picked up E but later realized the modifier problem. Good problem
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Re: SC-Under the 1986 tax law [#permalink] New post 09 Sep 2010, 15:49
seekmba wrote:
was too quick to pick E....my bad.

I did same, picked E and later realised the flaw in it
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Re: SC-Under the 1986 tax law [#permalink] New post 25 Oct 2010, 07:52
also picked e originally but realize the mistake now- thanks
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Re: SC-Under the 1986 tax law [#permalink] New post 27 Mar 2011, 20:56
Picked E but agree with A. Good one!!!
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Re: SC-Under the 1986 tax law [#permalink] New post 28 Mar 2011, 03:29
Picked E but A seems to be correct one
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Re: SC-Under the 1986 tax law [#permalink] New post 12 May 2011, 07:55
Picked up E. Realized my mistake.
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Re: Under the 1986 tax law, interest payments on a refinanced [#permalink] New post 30 Mar 2012, 01:32
between A and E, but in E payments are borrowed in spite of being made hence A
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Re: Under the 1986 tax law, interest payments on a refinanced [#permalink] New post 30 Mar 2012, 03:46
+1 A

Good question took 1:03 to get it right. Was stuck between A & E
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Re: Under the 1986 tax law, interest payments on a refinanced [#permalink] New post 02 Apr 2012, 00:46
IMO A


Payment can't be borrowed
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Re: Under the 1986 tax law, interest payments on a refinanced [#permalink] New post 01 Apr 2013, 03:14
Ans : e

A case of parallelism.. X and Y and Z..
X, Y and Z should be present in the same form.

… exceed the purchase price (X) ..., the cost of (Y) … and any additional payment borrowed against (Z)..

Option (B) and (C) break the parallelism, hence omitted immediately.
Option (D) verbiage is cumbersome and ambiguous
Option (E) better than Option (A) as “additional payment” .. for” is better than “additional payment.. to”
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Re: Under the 1986 tax law, interest payments on a refinanced [#permalink] New post 01 Apr 2013, 04:37
nitya34 wrote:
Under the 1986 tax law, interest payments on a refinanced home loan are deductible only if the amount of the loan does not exceed the purchase price of the home, the cost of improvements, and any additional amount borrowed against the home to pay for medical or educational expenses.

(A) any additional amount borrowed against the home to pay for medical or educational expenses
(B) borrowing any additional amount against the home for payment of medical or educational expenses
(C) also borrowing any additional amount against the home to pay for medical or educational expenses
(D) any additional payment of medical or educational expenses that were borrowed against the home
(E) any additional payment borrowed against the home for medical or educational expenses




A-> concise
B-> not parallel
C-> not parallel
D-> as per the previous sentence amount makes it parallel
E-> as per the previous sentence amount makes it parallel
Re: Under the 1986 tax law, interest payments on a refinanced   [#permalink] 01 Apr 2013, 04:37
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