Salaried Exempt Vs. Salaried Nonexempt. Although several criteria separate salaried exempt workers from salaried nonexempt workers, the one key difference between salaried exempt status and salaried nonexempt status is overtime pay. Exempt employees don't receive overtime pay; nonexempt employees do. The classification criteria for exempt and nonexempt workers are part of the Fair Labor Standards Act, or the FLSA, which is the federal law that governs minimum wage, overtime pay and working hours.
Investment Interest and Tax Deductions. One exception to the general rule that interest is tax deductible is investment interest. Investment interest payments are paid on indebtedness properly allocable to property held for investment, such as stocks held on margin, loans to others, etc.
For the tax year, the taxpayer paid interest on the mortgage. The IRS said that the taxpayer could deduct, as interest on acquisition indebtedness under I.R.C. Â§163(h)(3)(B), interest paid during the year on $1,000,000 of the $1,200,000 indebtedness that was used to acquire the principal residence.