Question

QUESTION 39 Interest paid or accrued during 2018 on aggregate acquisition indebtedness of $2 million or...

QUESTION 39

  1. Interest paid or accrued during 2018 on aggregate acquisition indebtedness of $2 million or less ($1 million or less for married persons filing separate returns) is deductible as qualified residence interest.

    True

    False

QUESTION 40

  1. In 2019, Jonathan pays real estate taxes of $18,000 and New York State income taxes of $17,000. Assuming he itemizes, what deduction for taxes can Jonathan claim in 2019?

    a.

    $10,000

    b.

    $28,000

    c.

    $27,000

    d.

    $35,000

Homework Answers

Answer #1

TAXPAYERS CAN DEDUCT THE INTEREST PAID ON FIRST AND SECOND MORTGAGES UP TO $1,000,000 IN MORTGAGE DEBT (THE LIMIT IS $500,000 IF MARRIED AND FILING SEPARATELY). ANY INTEREST PAID ON FIRST OR SECOND MORTGAGES OVER THIS AMOUNT IS NOT TAX DEDUCTIBLE

QUESTION 39 : INTEREST PAID OR ACCRUED DURING 2018 OF $ 2MILLION IS DEDUCTIBLE AS MAXIMUM INTEREST CAN BE DEDUCTIBLE UPTO $ 5 MILLION FOR MARRIED COUPLE FILLING JOINTLY

SO THE STATEMENT IS TRUE

QUESTION 40

SOME COMMON ITEMIZED TAX DEDUCTIONS INCLUDE:

  • MEDICAL AND DENTAL EXPENSES
  • STATE AND LOCAL TAXES
  • REAL ESTATE MORTGAGE INTEREST
  • GIFTS BY CASH OR CHECK
  • CASUALTY AND THEFT LOSSES FROM A FEDERALLY DECLARED DISASTER

The TCJA capped the deduction for state and local taxes at $10,000

SO TOTAL DEDUCTION =18000+10000 =28000

SO OPTION B $ 28000 IS CORRECT

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