How much mortgage interest may she deduct as an itemized deduction?
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This year (2022), Teresa purchased a personal residence at a cost of $950,000. She borrowed $800,000 secured by the home to make the purchase. This year, she paid interest expense on this mortgage of $40,000. How much mortgage interest may she deduct as an itemized deduction?
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- In the current year, Sandra rented her vacation home for 75 days, used it for personal use for 22 days, and left it vacant for the remainder of the year. Her income and expenses before allocation are as follows: Rental income Real estate taxes Utilities Mortgage interest Depreciation Repairs and maintenance Rental income Real estate taxes Required: What is Sandra's net income or loss from the rental of her vacation home? Use the Tax Court method. Note: Round your intermediate computations to 5 decimal places and final answers to nearest whole dollar value. Utilities Mortgage interest Repairs and maintenance $ 15,000 2,000 1,500 3,800 Depreciation Net rental income, 7,200 1,300 Schedule E Schedule AIn 2022, Nadia is single and has $104,000 of regular taxable income. She itemizes her deductions as follows: real property taxes of $1,700, state income taxes of $2,200, and mortgage interest expense of $11,000 (acquisition indebtedness of $200,000). In addition, she receives tax-exempt interest of $1,400 from a municipal bond (issued in 2006) that was used to fund a new business building for a (formerly) out-of-state employer. Finally, she received a state tax refund of $400 from the prior year. Note: Amounts to be deducted should be indicated by a minus sign.After paying the corresponding estate tax, Nicanor inherited a house and lot from his father valued at Php 5,000,000 on February 14, 2018. At the time of his father’s death, the property is mortgaged in the amount of Php 1,000,000. On October 6, 2021, Nicanor died. The details of Nicanor’s estate are reflected below: Real properties and personal properties personally owned by Nicanor – Php 5,000,000 House and lot Nicanor inherited from his father: BIR Zonal value – Php 3,000,000 Value per Tax Declaration: Land – Php 2,000,000 House – Php 4,000,000 The following are expenses / deductions paid/payable attributable to the estate at the time of his death: Outstanding balance of the mortgage on his father’s property – Php 400,000 Unpaid mortgage on Nicanor’s properties – Php 500,000 Losses – Php 500,000 Total unpaid taxes – Php 100,000 Claims by hospitals on unpaid medical bills – Php 500,000 Donation to the City Government for Public Use – Php 500,000 How much is the total…
- Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: $ 1,270 Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance 710 6,300 1,150 800 Utilities 840 Depreciation 10,950 During the year, Natalie rented out the condo for 98 days, receiving $31,250 of gross income. She personally used the condo for 40 days during her vacation. Natalie's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.)Mr. Dela Cruz died on March 10, 2019 with a gross estate amounting to Php125M. This includes a family home with a current fair market value amounting to Php12.5M. 1. How much is the total allowable deduction? 2. How much is the total tax due of Mr. Dela Cruz for the taxable year 2019?Which of the following estates will need to file a federal estate tax return assuming that the decedent died in 2026: An unmarried decedent owned property worth $3,400,000? Assuming the mortgage is deductible, an unmarried decedent owned real estate worth $12,000,000 subject to $4,000,000 mortgage? An unmarried decedent owned property worth $11,000,000 and had made taxable gifts in 2004 of $1,000,000? A married decedent owned a house worth $12,000,000 jointly with her spouse? (Assume ½ of value will be included in the decedent’s taxable estate.)
- Miller owns a personal residence with a fair market value of $195,000 and an outstanding first mortgage of $157,500. This year, Miller gets a home equity loan of $10,000 to purchase new jet skis. How much of this mortgage debt is treated as qualified residence indebtedness?$Michelle had a $200,000 long-term capital gain when she sold part of her Bitcoin in 2021, increasing her total taxable income to $450,000. If she files her return as Head of Household, how much tax would she owe on her capital gain?Miller owns a personal residence with a fair market value of $317,450 and an outstanding first mortgage of $253,960, which was used entirely to acquire the residence. This year, Miller gets a home equity loan of $15,873 to purchase new jet skis. How much of this mortgage debt is treated as qualified residence indebtedness?
- Marcy Tucker received the following items this year. Determine to what extent each item is included in her AGI. Assume the taxable year is 2022. Required: A $29,250 cash gift from her parents. A $670 cash award from the local Chamber of Commerce for her winning entry in a contest to name a new public park. $8,850 alimony from her former husband, which he paid under the terms of their 2011 divorce decree. $117,000 cash inheritance from her grandfather.Jessica purchased a home on January 1, 2022, for $500,000 by making a down payment of $200,000 and financing the remaining $300,000 with a loan, secured by the residence, at 6 percent. During 2022 and 2023, Jessica made interest-only payments on this loan of $18,000 (each year). On July 1, 2022, when her home was worth $500,000, Jessica borrowed an additional $125,000 secured by the home at an interest rate of 8 percent. During 2022, she made interest-only payments on the second loan in the amount of $5,000. During 2023, she made interest-only payments on the second loan in the amount of $10,000. What is the maximum amount of the $28,000 interest expense Jessica paid during 2023 that she may deduct as an itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard? (Assume not married filing separately.) multiple choice: Multiple Choice: a. $0 b. $10,000 c. $26,353 d. $26,000 e. $28,000In 2022, Mr. Smith rented his vacation home for 11 days during the year. Mr. Smith collected $3,800 of rents and incurred $1,200 in expenses during the 11 days rented. What amount of rental income should be included in Mr. Smith’s 2022 taxable income? No hand written and fast answer with explanation