Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2020: Home acquisition debt interest: $15,000 Credit card interest: $5,000 Home equity loan interest (used for home improvement): $6,500 Investment interest expense: $10,000 Mortgage insurance premiums (PMI): $1,000 With 2020 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal and the home equity loan principal combined are less than $750,000.

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Closing cost = Remaining down payment + closing expenses + discount points

Q: Tyrone and Akira incurred and paid the following amounts of interest during 2014: Home acquisition…

A: Given, Home acquisition debt interest = $15,000 Credit card interest = $5,000 Home equity loan…

Q: In 2020, Jose became the sole proprietor of a sandwich shop. During his first year in business, he…

A: Special depreciation allowance is the depreciation allowed to the new or used assets, where the used…

Q: Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts,…

A: 1. What is the principal (loan) = cost of home -down payment…

Q: jordan purchased a $20,000 piece of office furniture during 2019. The balance in his UCC pool for…

A: Un-amortized Capital Cost:The entire amount of depreciation that has been recorded against a fixed…

Q: employment income

A: Correct Answer is :- D.  $42,500

Q: Myers, who is single, has compensation income of $66,600 in 2020. He is an active participant in his…

A: Answer:- Traditional IRA [Individual Retirement Arrangement] is a qualified saving plan for…

Q: A postretirement plan promises health care coverage for all employees who retire after age 62 and…

A: Accumulated Post-retirement Benefit Obligation (ABOP) is the actual current value of benefits…

Q: On June 1st, 2014 Brandon invested $4 500 in a GIC at an annual interest rate that was compounded…

A: In compound interest, interest earned during first period is added to the principal for computation…

Q: In 2018 Freddie, a cash basis taxpayer, borrowed an amount from Roger amounting to 13,000 pesos…

A: Interest is a amount which is paid by a borrower to the person from the money has been taken by him…

Q: A couple buys a $200000 home, making a down payment of 19%. The couple finances the purchase with a…

A: Solution:- Given, A Couple buys a $200,000 home, making a down payment of 19% The couple finances…

Q: In the current year, Sanchez paid interest of $30,000 on a $1,000,000 principal home mortgage. He…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : It is…

Q: Heather owes Mark $10.000 payable on September 2021. If money can earn 12 %, what amount should Mark…

A: Accrued Interest- Accrued interest refers to the interest that has not been paid however has already…

Q: During 2020, a person receives Social Security at age 63 and is earning $23,000/year at a part-time…

A: Social security payments refers to the fixed form of amount or compensation that is paid on regular…

Q: Anna has a mortgage of $427,000 through her bank for property purchased. The loan is repaid by end…

A: A mortgage refers to a covered loan that is used to purchase a property with the property itself…

Q: Determine the effect of the loan on Maria’s gross income for 2020.

A: Note: The taxable interest income will be zero if the borrower’s net investment income at the end of…

Q: A couple buys a $190000 home, making a down payment of 23%. The couple finances the purchase with a…

A: Individuals and couples usually take loan when they buy homes because of the fact that houses are…

Q: During 2021, Robert has the following cash receipts: Wages: $50,000 Interest from City of Jackson…

A: As per Internal Revenue Services [IRS] definition ,  Gross Income includes…

Q: Lawan has been making payments on her federal student loan on an income-based repayment plan for the…

A: Tax is a charge which is charged on the taxable income a taxpayer. There are various ways a taxpayer…

Q: Howard paid $22,000 in mortgage payments in 2023. $15,000 was for interest and $7,000 was for…

A: A precise cost that eligible taxpayers can deduct from their adjusted gross income (AGI) to lower…

Q: Sue purchased a $33 comma 00033, 000 life insurance policy at the price of $2424 per $1000 of…

A: Insurance is the coverage on the risk of something. An insurance policy has to be taken at a fixed…

Q: Suzanne and Kerry entered into a financial agreement. On January 1, 2014, Suzanne gave $8400 to…

A: Rate of return refers to the formula of computing the rate of change specifically any add on cash…

Q: A couple buys $160000 home, making a down payment of 17%. The couple finances the purchase with a 15…

A: Here, Particulars Values Purchase value   $ 160,000 Down payment 17.00% Number of years…

Q: A couple buys a $190,000home, making a down payment of 16%. The couple finances the purchase with a…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: Find the closing costs (in $).

A: Closing Cost: It is  settlement costs. It is the fees  which  is paid  when obtaining  loan and…

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Purchase price of home = $260,000 Down payment = 25%*$260,000 = $65,000 Loan amount = Price of home…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.