How much and where on the tax return would Jessica James, a cash-basis farmer, deduct $8,544 mortgage interest expense; 20% allocable to her home and 80% allocable to the farm land? (a) $1,709 on Schedule A, and $6,835 increases the basis of the farm land. (b) $1,709 on Schedule A, and $6,835 on Schedule F. (c) $6,835 on Schedule A. (d) $6,835 on Schedule F.

How much and where on the tax return would Jessica James, a cash-basis farmer, deduct $8,544 mortgage interest expense; 20% allocable to her home and 80% allocable to the farm land? (a) $1,709 on Schedule A, and $6,835 increases the basis of the farm land. (b) $1,709 on Schedule A, and $6,835 on Schedule F. (c) $6,835 on Schedule A. (d) $6,835 on Schedule F.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter6: Accounting Periods And Other Taxes

Section: Chapter Questions

Problem 7MCQ: B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash...

See similar textbooks

Similar questions

Simon and Marie received a statement reporting that they paid $6,000 in mortgage interest during the past year. If they are in a 22 percent tax bracket, and they itemize their deductions, this deduction would reduce their taxable income by Select one: a. $1,000 b. $1,500 c. $3,000 O d. $6,000 e. $7,500 Clear my choice
An investor has a taxable income of $125997. He has an investment property which earns $21780 in rental income and incurs $35782 in expenses, including maintenance, local council rates, land tax and interest on a mortgage loan. What is his total income tax payable (excluding the 2% Medicare surcharge)? a. $23865 b. $26865 c. $24865 d. $27865
How much is the total income tax of Ana assuming she opted to be taxed at 8%? Ana, a self-employed resident citizen provided the following data for 2018 taxable year: Sales P2,800,000 1,125,000 650,000 Cost of sales Business expenses Interest income from peso bank deposit Interest income from deposit under FCDS 80,000 120,000 Gain on sale of land in the Phils. held as capital asset 500,000 with cost P1.5M when zonal is P1.2M P321,500 O P342,500 O P351,500 O P358,000
Bill Shass pays a property tax of $2,000. In his community, the tax rate is 50 mills. What is Bill's assessed value? Note: Do not round intermediate calculations. Assessed value
An individual resident citizen taxpayer who owns a ten (10)-door apartment with a monthly rental of P15,000.00 for each residential unit, sold this property to another individual taxpayer. The sale shall be subject to * a presumed capital gains tax. a percentage tax. the schedular tax on taxable income. an excise tax.
Find the gross income, the adjusted gross income, and the taxable income. Base the taxable income on the greater of a standard deduction or an temized deduction A taxpayer earned wages of $94,600, received $560 in interest from a savings account, and contributed $10,800 to a tax-deferred retirement plan She is entitled to a standard deduction of $18,800. The interest on her home mortgage was $6800, she contributed $9640 to charity, and she paid $2825 in state taxes Her gross income is $ (Simplify your answer)
Required: For the current tax year, discuss the deductibility of the interest payments, as well as the deductibility of the fees that were payable (citing authority ) . Damien owns a residential investment property that was unmortgaged. He agreed with the bank to borrow $400,000 with the investment property as security for the loan. This loan had a term of 30 years, and the loan set up costs, paid on 1 July of the current tax year, were $3000. Of the $400,000, $200,000 was used to buy shares listed on the stock exchange. He also used the other $200,000 to buy a new Porsche (for personal use). Total interest on the $400,000 for the tax year was $20,000. During the current tax year, Damien also borrowed another $2 million to buy a new investment property (a commercial premises which Damien rents out) which is secured by that commercial property. On 20 June 2024 (in the current tax year), Damien prepaid 3 years of interest on the commercial property loan -- specifically, he paid $300,000…
n each of the following cases, discuss how the taxpayers might respond to a tax rate increase in a manner consistent with the income effect. a. Mr. Edwards earns $32,000 a year as an employee, and Mrs. Edwards doesn’t work.b. Mr. Frank earns $22,000 a year as an employee, and Mrs. Frank earns $10,000 a year as a self-employed worker.c. Mr. George earns $22,000 a year as an employee, and Mrs. George earns $10,000 a year as an employee.
Carl owns property with an assessed value of $72,450. If the tax rate is 6.82% of the assessed value, how much tax does Carl owe? (Round your answer to the nearest cent if necessary)
Bill Shass pays a property tax of $3,200. In his community, the tax rate is 50 mills. What is Bill’s assessed value? (Do not round intermediate calculations.)
(d) What is Kevone's taxable income? (e) Kevone paid $16,300 in taxes last year. Will Kevone get a refund? If so, how much? If not, how much does he owe?
Scott and Bonnue, married taxpayers, earn $258,000 in taxable income and $7,700 in interest from an investment in City of Tampa bonds. If instead Scott and Bonnie earn an additional $150,000 of taxable income, what is their marginal tax rate on this income? Use the 2023 tax rate Blank 1 Use the 2023 tax rate