Miller owns a personal residence with a fair market value of $303,950 and an outstanding first mortgage of $243,160, which was usedentirely to acquire the residence. This year, Miller gets a home equity loan of $15,198 to purchase a new fishing boat for personal use.How much of this mortgage debt is treated as qualified residence indebtedness?

First Mortgage Debt:Amount: $243,160Purpose: Acquired the personal residenceQualifies as residence…

Answered: Miller owns a personal residence with a…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter15: Property Transactions: Nontaxable Exchanges

Section: Chapter Questions

Problem 40P

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Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays 8,400 rent on April 1, 2019, for the 12 months ending March 31, 2020. a. How much is Shannas deduction for rent expense in 2019? b. Assume the same facts, except that the 8,400 is for 24 months rent ending March 31, 2021. How much is Shannas deduction for rent expense in 2019?
John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56 days and used the house for 14 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included $5,000 in mortgage interest, $850 in property taxes, $900 for utilities and maintenance, and $3,500 of depreciation. What is John's deductible rental loss, before considering the passive loss limitations? $200 $875 $2,500 $3,200 $0
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Miller owns a personal residence with a fair market value of $195,000 and an outstanding first mortgage of $157,500, which was used entirely to acquire the residence. This year, Miller gets a home equity loan of $10,000 to purchase a new fishing boat. How much of this mortgage debt is treated as qualified residence indebtedness?
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 $10,000 to purchase new jet skis. How much of this mortgage debt is treated as qualified residence indebtedness?$
Roger takes out a $500,000 mortgage in January 23021 to purchase a primary residence with a fair market value of $2,000,000. The taxpayer takes out a $200,000 home equity loan in February 2021 to build an extension to the primary house. Both loans are secured by the primary residence, and the total amount owed does not exceed the value of the residence. Roger will pay $10,000 in interest on the first mortgage and $7,000 on the home equity loan in 2021. What percentage of interest is eligible for deduction?
In January 23021, Roger takes out $500,000 mortgage to purchse a main homef with a fair market value of $2,000.000. In February 2021, the taxpayer takes out a $200,000 home equity loan to put an addition on the main home. Both loans are secured by the main home and the total does not exceed the cost of the home. in 2021, Roger pays $10,000 interest on the first mortgage and $7,000 interested on the home equity loan. How much of the interest is deductible?
Michaela owns a principal residence in Georgia, a townhouse in San Francisco, and a yacht in Cape Cod. All of the properties have mortgages on which Michaela pays interest. a. For which residences can Michaela deduct mortgage interest? Principal residence plus one of the two other residences Feedback ▼Check My Work Qualified residence interest is interest paid or accrued during the taxable year on indebtedness (subject to limitations) secured by any property that is a qualified residence of the taxpayer. b. What are the limitations on Michaela's mortgage interest deduction? What strategy should Michaela consider to maximize her mortgage interest deduction? Michaela's deduction is limited to interest on acquisition indebtedness up to $1,000,000 or $ highest if the debt existed at December 15, 2017 100,000 X if incurred after that date. Therefore, she should choose the second residence that will result in the interest deduction.
LO.5Miller owns a personal residence with a fair market value of $195,000 and an outstanding first mortgage of $157,500, which was used entirely to acquire the residence. This year, Miller gets a home equity loan of $10,000 to purchase a new fishing boat. How much of this mortgage debt is treated as qualified residence indebtedness?
Stephen purchased a rental property on 03 August 2020 and has rented the property from this date.He incurred the following expenses when purchasing the property –> $6,320 Lender’s Mortgage Insurance> $15,987 Stamp duty on transfer of the property> $1,500 Mortgage broker’s fee> $750 Conveyancing fees> $600 Bank loan establishment fee> $700 Stamp duty on the mortgageCalculate how much Stephen can claim in borrowing costs for the 2021 year and select the correct answer below. $1,766 $1,658 $1,311 $1,442 $1,879
Anwer owns a rental home and is involved in maintaining it and approving renters. During the year he has a net loss of $8,400 from renting the home. His other sources of income during the year are a salary of $112,750 and $31,200 of long-term capital gains. How much of Anwer’s $8,400 rental loss can he deduct currently if he has no sources of passive income? Deductible rental loss?
Ilene rents her second home. During the year, Ilene reported a net loss of $10,600 from the rental. If Ilene is an active participant in the rental and her AGI is $133,000, how much of the loss can she deduct against ordinary income in the year?

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