Questions from Individual Taxation

Q: On January 1, year 1 Brandon and Alisa Roy purchased a

On January 1, year 1 Brandon and Alisa Roy purchased a home for $1.5 million by paying $500,000 down and borrowing the remaining $1 million with a 7 percent loan secured by the home. Later the same da...

Q: Jennifer has been living in her current principal residence for three years

Jennifer has been living in her current principal residence for three years. Six months ago Jennifer decided that she would like to purchase a second home near a beach so she can vacation there for pa...

Q: Rajiv and Laurie Amin are recent college graduates looking to purchase a

Rajiv and Laurie Amin are recent college graduates looking to purchase a new home. They are purchasing a $200,000 home by paying $20,000 down and borrowing the other $180,000 with a 30-year loan secur...

Q: In year 1, Peter and Shaline Johnsen moved into a home

In year 1, Peter and Shaline Johnsen moved into a home in a new subdivision. Theirs was one of the first homes in the subdivision. In year 1, they paid $1,500 in real property taxes on the home to the...

Q: Jesse Brimhall is single. In 2016, his itemized deductions were

Jesse Brimhall is single. In 2016, his itemized deductions were $4,000 before considering any real property taxes he paid during the year. Jesse’s adjusted gross income was $70,000 (also before consid...

Q: Craig and Karen Conder purchased a new home on May 1 of

Craig and Karen Conder purchased a new home on May 1 of year 1 for $200,000. At the time of the purchase, it was estimated that the real property tax rate for the year would be one percent of the prop...

Q: Kirk and Lorna Newbold purchased a new home on August 1 of

Kirk and Lorna Newbold purchased a new home on August 1 of year 1 for $300,000. At the time of the purchase, it was estimated that the real property tax rate for the year would be .5 percent of the pr...

Q: Jenae and Terry Hutchings own a parcel of land as tenants by

Jenae and Terry Hutchings own a parcel of land as tenants by entirety. That is, they both own the property but when one of them dies the other becomes the sole owner of the property. For nontax reason...

Q: What limitations exist for self-employed taxpayers in deducting home office

What limitations exist for self-employed taxpayers in deducting home office expenses, and how does the taxpayer determine which expenses are deductible and which are not in situations when the overall...

Q: Dillon rented his personal residence at Lake Tahoe for 14 days while

Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland. He resided in the home for the remainder of the year. Rental income from the property was $6,500. Ex...