5, In Year 1 Jorge buys a home for $200,000, making a down payment of $40,000 and taking out a loan from the bank for $160,000 to finance the balance Five years later, in the current year, the remaining loan balance is $130,000 while the home has increased in value to $300,000 If Jorge takes out a home equity loan of $110,000 this year and uses $10,000 on a vacation, $20,000 to pay down credit cards, and $80,000 to build an addition to the home, how much, if any, of the $110,000 home equity loan balance is allowable for calculating the home mortgage interest deduction on Jorges tax return for the year $0 $80,000 $100,000 $110,000 6, in Year 1, Sandy and Chris have adjusted gross income of $200,000 During the year, they provided more than half of the support for both of their unmarried adult children, Megna and Britt Both children live near the colleges they are attending Megna is a 25 year old full time graduate student with no earned income Britt is a 22 year old part time student with $15,000 earned income from a part time job What is the total amount of family tax credit, if any, that Sandy and Chris can claim on their Year 1 joint income tax return $0 $500 $1,000 $2,000 7, Which of the following personal tax credits is partially refundable American opportunity credit Retirement savings contributions credit Credit for the elderly and disabled Child and dependent care credit 8, Chad, a sole proprietor of a private boat charter business, purchased and placed into service ten boats for $260,000 each on May 1, Year 1 Chads taxable business income for Year 1 is $800,000 Assuming the Section 179 limit is $1,000,000 and the phase out threshold is $2,500,000, what is the maximum amount, if any, that Chad can deduct under Section 179 for Year 1 if he elects out of bonus depreciation $0 $800,000 $900,000 $1,000,000 9, Fulvias spouse died on February 14, Year 1, leaving Fulvia to fully support a dependent parent on her own Her parents only source of income is nontaxable social security If Fulvia remains unmarried until February 14, Year 3, what is the most advantageous filing status that can be used on Fulvias tax return for Year 2 Single Surviving spouse Married filing jointly Head of household 10, Dale and Sam finalized their divorce in 2019 The divorce decree provides that Dale must pay Sam $15,000 per year During 2020, Dale and Sam agreed that Dale would pay $10,000 directly to Sam and $5,000 to the university for Sams tuition What amount, if any, of these payments is deductible by Dale $0 $5,000 $10,000 $15,000

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5, In Year 1 Jorge buys a home for $200,000, making a down payment of $40,000 and taking out a loan from the bank for

5, In Year 1 Jorge buys a home for $200,000, making a down payment of $40,000 and taking out a loan from the bank for $160,000 to finance the balance. Five years later, in the current year, the remaining loan balance is $130,000 while the home has increased in value to $300,000. If Jorge takes out a home equity loan of $110,000 this year and uses $10,000 on a vacation, $20,000 to pay down credit cards, and $80,000 to build an addition to the home, how much, if any, of the $110,000 home equity loan balance is allowable for calculating the home mortgage interest deduction on Jorges tax return for the year?

$0
$80,000
$100,000
$110,000

6, in Year 1, Sandy and Chris have adjusted gross income of $200,000. During the year, they provided more than half of the support for both of their unmarried adult children, Megna and Britt. Both children live near the colleges they are attending. Megna is a 25-year-old full-time graduate student with no earned income. Britt is a 22-year-old part-time student with $15,000 earned income from a part-time job. What is the total amount of family tax credit, if any, that Sandy and Chris can claim on their Year 1 joint income tax return?

$0
$500
$1,000
$2,000

7, Which of the following personal tax credits is partially refundable?

American opportunity credit
Retirement savings contributions credit
Credit for the elderly and disabled
Child and dependent care credit

8, Chad, a sole proprietor of a private boat charter business, purchased and placed into service ten boats for $260,000 each on May 1, Year 1. Chads taxable business income for Year 1 is $800,000. Assuming the Section 179 limit is $1,000,000 and the phase-out threshold is $2,500,000, what is the maximum amount, if any, that Chad can deduct under Section 179 for Year 1 if he elects out of bonus depreciation?

$0
$800,000
$900,000
$1,000,000

9, Fulvias spouse died on February 14, Year 1, leaving Fulvia to fully support a dependent parent on her own. Her parents only source of income is nontaxable social security. If Fulvia remains unmarried until February 14, Year 3, what is the most advantageous filing status that can be used on Fulvias tax return for Year 2?

Single
Surviving spouse
Married filing jointly
Head of household

10, Dale and Sam finalized their divorce in 2019. The divorce decree provides that Dale must pay Sam $15,000 per year. During 2020, Dale and Sam agreed that Dale would pay $10,000 directly to Sam and $5,000 to the university for Sams tuition. What amount, if any, of these payments is deductible by Dale?