Maggie and Landon own a home valued at $200,000. They put 20% down when they purchased the home, and they currently have a mortgage for $195,000. The value of their home is less than it was when they first purchased the home, and they want to know how much equity they have. What is Maggie and Landon's owner's equity?
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- Jenny and Jerry have a home with a fair market value of $625,000. They borrowed $400,000 ten years ago to purchase the home. They currently owe $250,000 on the acquisition loan. They recently borrowed $110,000 on a home-equity loan. The proceeds were used to purchase a car, take a vacation, and redecorate their home. What is the maximum amount of their indebtedness that can generate deductible interest in the current year?Marcus purchased Vinnie and Marie’s personal residence for $225,000 cash and the assumption of their $100,000 mortgage. Vinnie and Marie bought the house six years ago for $275,000 and have used it as a primary residence. What amount of gain should Vinnie and Marie recognize on the sale of their personal residence?Aaron and Melissa are looking to sell their house for $700,000. They purchased the house seven years ago for $480,000 and didn't have any adjustments to factor in. If Aaron and Melissa sell their house for $700,000, how much will they have to pay in capital gains? O $700,000. Married couples are required to pay capital gains on the final sales price. O $220,000. All sellers have to pay capital gains on the sales price minus the price they originally paid. O $0. The $500,000 capital gains exclusion will allow them to write off any profits earned on the property. $0. Capital gains is only paid on commercial properties.
- The Rins own a home in Boston. They paid $780,000 for their home three years ago. Their current balance on their mortgage is $660,000. At the time that their home was worth $900,000, they refinanced their mortgage. Their new mortgage is for $800,000. In addition to the home in Buston, the Rins alco own a vacation home in Florida. They paid $350,000 for the home several yeas ago, and the current mortgage on the seconed home is $295,000. How much inretest the Rins are allowed to deduct if the excess proceeds from the refinanceing are used to buy or improvement their main home.The severson family owns a house worth $280,000, of which they still owe $113,545 on the mortgage. They also own two cars, one worth $5,200 and the other worth $15,600. They still owe $9,200 on one of the car loans. They have $2,300 in credit card debt and owe $18,200 for their daughter’s wedding. What is their net worth? A $157,555 B $162,155 C $143,245 D $300,800Sam bought a townhouse in 2005 with 30-year fixed mortgage. He married Ada in 2008. The next year, Ada inherited a small condo form her father. They sold the condo immediately and used proceeds from the condo as down payment to buy a $600,000 SFH in Northridge. This SFH became their primary home. Sam rented out the townhouse for $2,000/month and put rental income in their joint account. Which of the following statement regarding ownership is correct? Townhouse is Sam's separate property; condo is Ada's separate property; rental income becomes community property O Townhouse and rental income are Sam's separate property; condo becomes community property Townhouse and rental income are Sam's separate property; condo is Ada's separate property O Townhouse is Sam's separate property; condo and rental income become community property.
- Raymond and Susan are married and 55 years old. They sell their personal residence for $850,000 cash. They purchased the house fifteen years ago for $200,000. What is the amount of gain that Raymond and Susan should recognize on the sale?Alysa and Todd purchased a home in 1999 for $80,000 with no down payment. In 2004, they were able to refinance their mortgage on the home for $140,000. They reinvested $75,000 into the home, adding a new addition and making upgrades. In 2006, the couple sold the home for $320,000. What was the value of Alysa and Todd's equity in 2006? $250,000 $180,000 $240,000 $60,000.Jack and Kim were coworkers who fell in love and got married. They sold their principal residence in MD for the net amount of $1,000,000 after all selling expenses. Jack and L bought the house 9 years ago and occupied it until it was sold. On the date of sale, the house had a cost basis of $200,000. What amount of gain should Jack and Kim recognize from the sale of the residence? $1,000,000 $800,000 $300,000 $550,000
- aRhonda owns an office building that has an adjusted basis of $45,000. The building is subject to a mortgage of $20,000. She transfers the building to Miguel in exchange for $15,000 cash and a warehouse with an FMV of $50,000. Miguel assumes the mortgage on the building. Required: What are LaRhonda’s realized and recognized gain or loss? What is her basis in the newly acquired warehouse?John and Janet are both 61 years old, and they are still working at their current jobs. Neither one of them plans to retire until age 67. They sold their main home, and with the proceeds from the sale, they purchased a condominium and paid for it in full. They have $104,000 left in the bank. Which investment vehicle is appropriate if they want to avoid losing any of the money and use it all for their retirement?Martha bought a home in 1988 at a cost of $100,000.00. She put 20% down and financed the remainder by way of a mortgage. She paid the mortgage off in 20 years. Over the years, she spent $45,000 improving and updating the house. Martha sold her home last year for $310,000.00 What was the value of Martha's equity in her home?