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- Which of the following types of interest is never deductible on a schedule a itemized deductions is it interest paid on money borrowed to buy stock for a standard investment portfolio or mortgage interest paid on a second home or personal interest paid on a car loan or points paid in advance at the time of securing a mortgage for a taxpayers Main residenceWhich of the following liabilities would be considered nonrecourse? A bank loan for which the taxpayer is personally liable. b.A $20,000 real estate loan which allows the bank to take the real estate if the taxpayer stops making payments on the loan. c.Credit card debt. d.All of these choices are non-recourse liabilities.Which of the following items of interest expense may be deducted from gross income? Interest deducted in advance by the bank on a loan where no amortization payment has yet been made and the taxpayer reports income on cash basis. O Interest on the corporation's preferred stocks. O Interest for delinquency in the payment of taxes. O Interest paid out of a personal loan by the taxpayer.
- Which of the toliowing types of interest is not taxable in the year it is posted to the taxpayer's account? Select one O a Interest on a savings account OD interest on an investment account Oc Imterest on an IRA O d. interest on ife insurance proceeds remaining with the insurance companyWhich of the following statements regarding deductions for real property taxes is incorrect? Multiple Choice O O A taxpayer is allowed to immediately deduct property taxes as the taxpayer makes monthly mortgage payments to an escrow account held by her mortgage company. Taxpayers are not allowed to deduct payments made for setting up water and sewer services. An individual deducts real property taxes on her principal residence as a from AGI deduction. Taxpayers are not allowed to deduct payments made for repairs to neighborhood sidewalks.Which of the following types of interest is not deductible? a.Qualified mortgage interest on residence b.Credit card interest c.Qualified mortgage interest on second residence d.All of these choices are correct. e.None of these choices are correct.
- Which of the following statements regarding the tax deductibility of points related to a home mortgage is correct? (See image for answers)In a ROTH IRA or 401 (k): O A. Contributions are NOT tax deductible in the year they are made B. Withdrawals are tax free as long as they are held for at least 5 years and you are at least 591/2 years old C. Neither A nor B D. Both A & B12. A taxpayer is required by law to provide the payer's name, address, & tax identification number on a separate summary sheet attached to Schedule B when reporting interest from which of the following sources on their return? a. Nominee distribution. b. Seller-financed mortgage. c. Frozen deposit. d. Certificate of deposit.
- Which of the following is true? a. Points paid to get a mortgage (origination points) are tax deductible while points paid to lower the interest rate are not. b. Points paid to get a mortgage (origination points) are not tax deductible while points paid to lower the interest rate are. c. Both types of points are tax deductible. d. Neither type of points is tax deductible. If the listing realtor and your realtor (you are the buyer) are the same person a. you know you are going to get a great deal b. you do not really know whose interest the realtor has at heart c. this by law cannot happen d. you only have to pay half of the realtor's commission Which of the following statement is true? a. If you put less than 20% down on a house, you have to get mortgage insurance. No matter how much you put down, if you have a mortgage, you have to get mortgage insurance. b. c. If you put more than 10% down, you do not have to get mortgage insurance. d. Mortgage insurance from the lender is…! Required information [The following information applies to the questions displayed below.] Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 2,050 7,450 4,200 650 4,650 23,700 During the year, Alexa rented out the condo for 137 days. 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 137 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $47,750 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…Cancellation of Debt Income Question 9 of 75. Which of the following is generally excluded from cancellation of debt income without having to prove insolvency? O Credit card principal from a personal expense. A mortgage on a qualified principal residence that was secured by the residence. A recourse loan with no pledged property as collateral. Student loans that were canceled due to nonpayment. Mark for follow up Question 10 of 75. Arthur has a nonrecourse loan financed by his bank. This means that O Arthur must recognize ordinary income if this debt is canceled. Arthur will not recognize gain or loss on the disposition of the property. The lender has no right to seek payment from Arthur for any debt in excess of collateral. O The lender may not foreclose or repossess the property that secures the debt. Mark for follow up Question 11 of 75. Unless an exception or exclusion applies, in what specific order must tax attributes be reduced? O Basis of all property, net operating loss (NOL),…
