Question
Frank, age 38, is a single taxpayer and is the sales manager of Standard Co., an auto stereo dealer. Frank's adjusted gross income (AGI) for
Frank, age 38, is a single taxpayer and is the sales manager of Standard Co., an auto stereo dealer. Frank's adjusted gross income (AGI) for the year is $67,000.
During the year, Frank made the interest payments shown in the following table. Enter the amounts that are reportable interest expense deductions, if any. If none of a particular payment is a reportable interest expense deduction, enter a zero (0) for that expense. Enter the total amount deductible on Schedule A, Itemized Deductions, of Form 1040, U.S. Individual Income Tax Return
Note: Disregard all AGI limitations, if any, in completing the first section of this table. Then follow the instructions in the table in completing the second section. Assume that the $1,000,000 limitation on mortgage indebtedness is not exceeded.
| |||||||||
A | B | C | |||||||
---|---|---|---|---|---|---|---|---|---|
1 | Interest payment | Amount | Amount reportable on Schedule A | ||||||
2 | Mortgage interest paid on principal residence | 11,400 | 123 | ||||||
3 | Points on 30-year mortgage for the purchase of the principal residence paid on June 30 of the current year | 4,200 | 123 | ||||||
4 | Mortgage interest paid on commercial rental property | 2,150 | 123 | ||||||
5 | Interest paid on personal credit cards | 470 | 123 | ||||||
6 | Interest paid to IRS for late filing of income tax return | 25 | 123 | ||||||
7 | Interest paid on a $50,000 home equity loan; the FMV of the home exceeds the acquisition indebtedness by $70,000 | 475 | 123 | ||||||
8 | Total | 18,720 | 123 |
In the following section, indicate the dollar amount of any limitations that apply to the expenses above. Enter any limitation as a negative number.
| ||||||||
A | B | |||||||
---|---|---|---|---|---|---|---|---|
1 | Total amount from table above | 123 | ||||||
2 | AGI limitation (in dollars) |
| ||||||
3 | Total amount deductible on Schedule A |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started