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21 Mar 2009, 11:25
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
70% (01:38) correct
30%
(01:45)
wrong
based on 2678
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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) 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
https://www.nytimes.com/1987/04/12/realestate/postings-tax-tip-refinanced-mortgages.html
Prior to the new law, interest payments on a refinanced home loan were fully deductible. Under the new law, the interest is 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 a home to pay for medical or educational expenses. The point to the rule is to exclude benefits from those using their homes to finance other kinds of consumer spending. The Aug. 16 cut-off arose from the fact that the House-Senate conference committee reached agreement on the legislation on that date.
Prior to the new law, interest payments on a refinanced home loan were fully deductible. Under the new law, the interest is 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 a home to pay for medical or educational expenses. The point to the rule is to exclude benefits from those using their homes to finance other kinds of consumer spending. The Aug. 16 cut-off arose from the fact that the House-Senate conference committee reached agreement on the legislation on that date.
21 Mar 2009, 11:43
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IMO A.
nitya34
- payment can't be borrowed
General Discussion
21 Mar 2009, 12:22
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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.
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.
