Question

Taxpayers are not allowed any sort of interest expense deduction on personal credit card debt or on loans to acquire personal-use automobiles. True or False?

Answer 1

False. Taxpayers are not allowed to deduct interest expenses on personal credit card debt or loans for personal-use automobiles.

Step-by-step explanation:

False. Taxpayers are not allowed to deduct interest expenses on personal credit card debt or loans to acquire personal-use automobiles. This means that they cannot reduce their taxable income by the amount of interest paid on these types of debts.