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Which of the following is a true statement? A. Taxpayers may deduct interest on...

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Accounting

Which of the following is a true statement?

A. Taxpayers may deduct interest on up to $1,000,000 of home-equity debt.

B. None of the choices are correct.

C. A taxpayer who incurs acquisition indebtedness in 2018 and after may only deduct interest on up to $750,000 of acquisition indebtedness.

D. Taxpayers may only deduct interest on up to $1,500,000 of acquisition indebtedness.

E. The deduction for investment interest expense is not subject to limitation.

A tax practitioner can avoid IRS penalty relating to a tax return position:

A. if the position has a reasonable basis and is disclosed on the tax return.

B. None of the choices are correct.

C. if there is not substantial authority to support the position.

D. only if the position has a more likely than not chance of being sustained by the IRS or courts.

E. if the position has a realistic possibility of being sustained by the IRS or courts.

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