A sole proprietor borrows 1000 and uses 85% of the proceeds to buy business supplies and the rest to pay down personal debt. The taxpayer can deduct all of the interest because over 50% of the loan proceeds were used for business purposes. True or False.

A sole proprietor borrows 1000 and uses 85% of the proceeds to buy business supplies and the rest to pay down personal debt. The taxpayer can deduct all of the interest because over 50% of the loan proceeds were used for business purposes. True or False.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 80IIP

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