Questions from General Taxation

Q: Mary’s mother defaults on a home loan and Mary pays $600

Mary’s mother defaults on a home loan and Mary pays $600 in loan payments, including $175 in interest. Mary is not legally obligated on the loan and has no ownership interest in her mother’s home. a....

Q: Matthew borrows $250,000 to invest in bonds. During

Matthew borrows $250,000 to invest in bonds. During the current year, his interest on the loan is $30,000. Matthew’s interest income from the bonds is $10,000. This is Matthew’s only investment income...

Q: Ken paid the following amounts for interest during 2016:

Ken paid the following amounts for interest during 2016: Qualified interest on home mortgage……………&a...

Q: Janet and James purchased their personal residence 15 years ago for $

Janet and James purchased their personal residence 15 years ago for $300,000. For the current year, they have an $80,000 first mortgage on their home, on which they paid $5,750 in interest. They also...

Q: Helen paid the following amounts of interest during the 2016 tax year

Helen paid the following amounts of interest during the 2016 tax year: Mortgage interest on Dallas residence (loan balance $50,000) ……………$1,585 Automobile loan interest (personal use only) …………………………...

Q: Mark owns his home and has a $250,000 mortgage

Mark owns his home and has a $250,000 mortgage related to his purchase of the residence. When his daughter went to college in the fall of 2016, he borrowed $20,000 through a home equity loan on his ho...

Q: Three years ago, Barbara donates a painting that cost $8

Three years ago, Barbara donates a painting that cost $8,000, to a university for display in the president’s office. The fair market value of the painting on the date of the gift is $14,000. If Barbar...

Q: Jerry made the following contributions during 2016: His synagogue (

Jerry made the following contributions during 2016: His synagogue (by check) ……………â€&brvb...

Q: Richard donates publicly traded Gold Company stock with a basis of $

Richard donates publicly traded Gold Company stock with a basis of $1,000 and a fair market value of $15,000 to the college he attended, which is considered a public charity. Richard has owned the sha...

Q: List the rules that apply to taxpayers with a qualifying child in

List the rules that apply to taxpayers with a qualifying child in order to claim the EIC.