INDIVIDUAL INCOME TAX
2019th Edition
ISBN: 9780357323410
Author: VALUE EDITION
Publisher: CENGAGE L
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Question
Chapter 10, Problem 31P
To determine
Identify the amount of mortgage interest that Person A may deduct in the given situation.
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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?
28.
John Jay paid interest expense of $12,000 on his personal residence original first mortgage this
year and $5,000 on a $100,000 home equity credit line also secured by a mortgage on his home
Half of the home equity credit line loan proceeds were used to put a new roof on the home and the
other half was used to purchase a new car. Assuming the acquisition and home equity limits are
not exceeded, how much of the total interest expense is deductible on John's Schedule A as
qualified home mortgage interest?
O$17,000
O$14,500.
O$12,000
29
The Browns borrowed $30,000, secured by their home, to pay their son's college tuition. At the
time of the loan, the fair market value of their home was $400,000, and it was unencumbered by
other debt. The interest on the loan is treated for itemized deductions as
ODeductible points.
ONon-deductible home equity (mortgage) interest.
ODeductible home equity (mortgage) interest.
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?
Chapter 10 Solutions
INDIVIDUAL INCOME TAX
Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - LO.2 David, a sole proprietor of a bookstore, pays...Ch. 10 - LO.2 Jayden, a calendar year taxpayer, paid 16,000...Ch. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - LO.5 Thomas purchased a personal residence from...Ch. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - LO.6, 8 William, a high school teacher, earns...Ch. 10 - LO.2 Barbara incurred the following expenses...Ch. 10 - Prob. 16CECh. 10 - Prob. 17CECh. 10 - Prob. 18CECh. 10 - Prob. 19CECh. 10 - Prob. 20CECh. 10 - Prob. 21CECh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - LO.2 Paul suffers from emphysema and severe...Ch. 10 - LO.2 For calendar year 2019, Jean was a...Ch. 10 - LO.2 During 2019, Susan incurred and paid the...Ch. 10 - In May, Rebeccas daughter, Isabella, sustained a...Ch. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - Prob. 34PCh. 10 - On December 27, 2019, Roberta purchased four...Ch. 10 - Prob. 36PCh. 10 - Prob. 37PCh. 10 - Prob. 38PCh. 10 - LO.2, 3, 4, 5, 6, 7 Linda, who files as a single...Ch. 10 - LO.2, 3, 4, 5, 6, 7 For calendar year 2019, Stuart...Ch. 10 - Prob. 41CPCh. 10 - Marcia, a shareholder in a corporation with stores...Ch. 10 - Prob. 4RPCh. 10 - Prob. 1CPACh. 10 - Prob. 2CPACh. 10 - Prob. 3CPACh. 10 - Kurstie received a 800 state income tax refund...Ch. 10 - Which of the following would preclude a taxpayer...Ch. 10 - Prob. 6CPA
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