Question

Question 3 The basis of property must be reduced by the amount of any casualty loss...

Question 3
The basis of property must be reduced by the amount of any casualty loss deducted.
Question 3 options:
   1) True
   2) False


Question 4
All interest payments in the following category are never deductible for tax purposes:

Question 4 options:

1) Qualified residence interest expense


2) Personal credit card interest expense


3) Investment interest expense


4) Trade or business interest expense

Homework Answers

Answer #1

Answer 3

Your required answer is option 1 i.e. True

If there is any casualty arise then that casualty loss must be deducted from the property however if there is any insurance for that property than that recoverable amount of insurance claim must be reduced from property firstly.

Answer 4

Your required answer is option 2 i.e. personal credit card expense

You are allowed for tax deduction for qualified resident interest expense, Investment interest expense and Trade or business interest expense but unfortunately you can take deduction of your personal credit card expense as "Personal Expense" are allowed to take deduction.

I hope this clear your doubt.

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