Tammy is a homeowner who also has outstanding credit card debt and a car loan. She is considering taking out a home equity loan to pay off these debts. Which of the following statements is(are) true in relation to this strategy?
I. The interest on the loan is deductible as long as she borrows less than $100,000 or the equity in her house
II. The interest will not be deductible because she is using the loan to pay off consumer debt
III. She can borrow up to $1 million and take an income tax deduction for interest paid
A) II and III
B) II only
C) I only
D) I, II and III