Which 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 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.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter10: Deductions And Losses: Certain Itemized Deductions

Section: Chapter Questions

Problem 6CPA

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Which of the following is an example of nonrecourse debt? (a) A personal loan secured by collateral where the borrower's liability is limited to the collateral. (b) Any business debt that is secured by collateral. (c) A home mortgage where the buyer is personally liable for any deficiency after foreclosure. (d) An automobile lease.
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 residence
Which of the following statements is false? Group of answer choices A.Prepaid expenses are fully deductible when paid for a cash basis taxpayer. B.Reasonableness is most often considered in the context of compensation. C.Inventory can not be deducted when paid. D.You are considered to have paid at the date you pay with a credit card, even though you still owe the bank.
Even if you default on your mortgage loan the lender can not begin foreclosure proceedings until the Federal government approves. True or False
which of the followings is considered as long term liability :Select one .a mortgage payable .b current portion of long term liability .C bank overdraft .d unearned revenues
A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be TRUE? a. Because it is voluntary, it will not be an adverse item on the buyer's credit. b. The lender will take the title subject to any junior liens. c. The lender will usually retain his rights under mortgage insurance or VA guarantee. d. The loan will still be assumable.
Which of the following statements is false? A.Prepaid expenses are fully deductible when paid for a cash basis taxpayer. B.Reasonableness is most often considered in the context of compensation. C.Inventory can not be deducted when paid. D.You are considered to have paid at the date you pay with a credit card, even though you still owe the bank.
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1. Bad debt is an expense in the books of accounts when a provision is made for it. Such amount should likewise be deducted from gross income to arrive at taxable income. 2. The phrase "actually charged off from taxpayer's book of accounts" means that the amount of money lent by the taxpayer (in the course of his business, trade or profession) to his debtor that had been recorded in the books of account as receivable has actually become worthless as of the end of the taxable year, and that the said receivable has been cancelled and written off from the said taxpayer's books of accounts. A= 1st statement is true, second statement is false. B= 1st statement is false, second statement is true. C= Both statements are false. D= Both statement are true. с B OA D
Which of the following statements is false? In order to claim a bad debt deduction: a. There must be an existing debt. b. The debt must be written-off. c. The taxpayer must be in the business of money-lending. d. The debt must be bad.
When taxpayers borrow money to acquire investments, the interest expense they pay on the loan is and the deduction is limited to the taxpayer's income for the year. expense
Taxpayers can deduct a nonbusiness bad debt beginning in the year it is deemed partially worthless. True or false