____ You were legally liable for the debt of any interest expense you claimed.
____ Points you paid as a borrower as compensation for specific services that the lender performed in connection with your account were not deducted as interest.
____ Points paid as a seller were not deducted as interest.
____ You did not deduct interest on a loan used to purchase or hold tax-exempt securities.
____ You did not deduct personal interest. (Personal interest is defined as any interest that is not home mortgage interest, investment interest or business interest.
____ Tax penalties were not deducted as interest.
____ If you are an accrual-basis taxpayer, you deducted your interest expense ratably over the period for which it accrued.
____ If you are an accrual-basis taxpayer, you did not deduct interest owed to a related taxpayer if the related taxpayer is a cash-basis taxpayer who actually or constructively received the interest payment more than two and one-half months after the close of your tax year for a debt incurred on or before September 29, 1983.
____ If you use the cash method of accounting and the interest expense was not paid during the taxable year, it was not deducted.
____ If you use the accrual method of accounting and the interest expense was not incurred during the taxable year, no deduction was made.
____ The deduction shown on your return as interest was for interest on a bona fide debt.
____ Your deduction for investment expense did not exceed your net investment income.
© 1986, 1998 to 2002, Jack Warren Wade, Jr.
