QUESTION 39
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
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 |
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:
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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