How much of the interest is deductible as an itemized deduction?
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At the end of 2019, Mark owes $250,000 on the mortgage related to the 2016 purchase of his residence. When his daughter went to college in the fall of 2019, he borrowed $20,000 through a home equity loan on his house to help pay for her education. The interest expense on the main mortgage is $15,000, and the interest expense on the home equity loan is $1,500. How much of the interest is deductible as an itemized deduction?
$________________ is deductible because the______________ is not deductible.
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- Ms. Taylor Milden is provided with an automobile by her employer. The employer acquired the automobile in 2018 for $25000, including sales tax. During 2019, Ms. Milden drives the automobile for a total for 23500 kilometers, 9000 of which were related to employment duties. The automobile is available to Ms. Milden throughout the year. What is Ms. Milden's 2019 operating cost benefit for the use of this automobile? Round to the nearest dollar. Do NOT write commas, dollar signs, or decimals in your response. Your Answer: AnswerJavier and Anita Sanchez purchased a home on January 1, 2021, for $852,000 by paying $284,000 down and borrowing the remaining $568,000 with a 7 percent loan secured by the home. The loan requires interest-only payments for the first five years. Javier and Anita file a joint return, have great eyesight, and are under 60 years of age. The interest expense is their only itemized deduction for the year. Their marginal tax rate is 32 percent. What is the after-tax cost of their 2021 interest expense? (Round your intermediate calculations and the final answer to the nearest whole dollar amount.) After-tax cost of the interest expenseTamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance. Utilities Depreciation $ 1,000 500 3,500 900 650 950 8,500 During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Tamar'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 Tamar uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions…
- In 2022, Sven is single and has $160,000 of regular taxable income. He itemizes his deductions as follows: real property tax of $4,000, state income tax of $6,000, and mortgage interest expense of $25,000 (acquisition debt of $300,000). He also has a positive AMT depreciation adjustment of $4,500. a. What is Sven's alternative minimum taxable income (AMTI)? Description Regular taxable income AMTI Amountplease help me to solve this questionAmanda purchased a home for $520,000 in 2016. She paid $104,000 cash and borrowed the remaining $416,000. This is Amanda's only residence. Assume that in year 2021 when the home had appreciated to $780,000 and the remaining mortgage was $312,000, interest rates declined and Amanda refinanced her home. She borrowed $520,000 at the time of the refinancing, paid off the first mortgage, and used the remainder for purposes unrelated to the home. What is her total amount of her amount of acquisition indebtedness for purposes of determining the deduction for home mortgage interest? (Assume not married filing separately.)
- Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 4,400 Mortgage interest Property taxes Repairs & maintenance Utilities 7,250 4,100 700 4,700 16,800 Depreciation During the year, Alexa rented out the condo for 130 days. She did not use the condo at all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 130 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $50,250 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo and that her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the following questions: Note…Greg Grove pays $50,000 interest in 2020 on his mortgage on his principal residence. It has an interest rate of 4 percent and balance of $1,250,000 during the year. He took out the mortgage in 2019. How much of this interest is deductible on Greg’s tax return for 2020? show your workSelma operates a contractor's supply store. She maintains her books using the cash method. At the end of 2023, her accountant computes her accrual basis income that is used on her tax return. For 2023, Selma had cash receipts of $1,400,000, which included $200,000 collected on accounts receivable from 2022 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2023, she had $250,000 in accounts receivable from customers, all from 2023 sales. Question Content Area a. Compute Selma's accrual basis gross revenues for 2023.$fill in the blank fd1ff2f0c02e01e_1 Question Content Area b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2023 was $1,300,000. At the end of 2022, she had merchandise on hand with a cost of $150,000. At the end of 2023, the cost of merchandise on hand was $300,000. Compute Selma's gross income (profit) from merchandise sales for 2023. The cost of goods sold for 2023 under the accrual method…
- Rex Luther is an Anesthesiologist. He is single and has an adjusted gross income of $244,500. He paid $5,200 in student loan interest in 2022. How much can he deduct in student loan interest as an adjustment to his income?Amanda purchased a home for $860,000 in 2016. She paid $172,000 cash and borrowed the remaining $688,000. This is Amanda's only residence. Assume that in year 2021 when the home had appreciated to $1,290,000 and the remaining mortgage was $516,000, interest rates declined and Amanda refinanced her home. She borrowed $860,000 at the time of the refinancing, paid off the first mortgage, and used the remainder for purposes unrelated to the home. What is her total amount of her amount of acquisition indebtedness for purposes of determining the deduction for home mortgage interest? (Assume not married filing separately.) Multiple Choice ___ $516,000. ___ $645,000. ___ $860,000. ___ $946,000.In 2023, Ms. Gesner's employer provides her with an automobile for 11 months of the year. The automobile cost $57,560, which included HST. She drives it a total of 61,600 kilometres, 16,400 of which are for personal purposes and 45,200 for employment purposes. The employer pays all maintenance expenses, which in 2023 total $8,950 for the year. What is the minimum taxable benefit for the use of the automobile for 2023? (Round your answer to the nearest whole dollar.) O A. $17,153 B. $17,767 O C. $16,738 D. $18,075
