Which of the following is a true statement?
A. Taxpayers may only deduct interest on up to $1,500,000 of acquisition indebtedness.
B. Taxpayers may deduct interest on up to $1,000,000 of home-equity debt.
C. The deduction for investment interest expense is not subject to limitation.
D. Interest on home-equity debt up to $100,000 is deductible, even if the loan proceeds are used to buy a new car.
E. None of these is true.
Answer: D. Interest on home-equity debt up to $100,000 is deductible, even if the loan proceeds are used to buy a new car.