Question
Help on this tax return assignment questions Question 1: Tom borrowed $90,000 through a home equity loan to pay off some debts and bring his
Help on this tax return assignment questions
Question 1: Tom borrowed $90,000 through a home equity loan to pay off some debts and bring his family on a two-week trip to Tampa during 2016. During time of this loan the outstanding home mortgage was $340,000 while the fair market value of their home was $420,000.
Real estate tax on personal residence 4,600
Interest
Home mortgage $6,800
Interest on home equity loan 2,200 9,000
Question 2: The following charitable contributions were made to a credentialed charitable organizations $10,000 in cash donated to their local church; The Rodriguez family donated a Toyota Tundra to their daughter's school. The vehicle basis was $25,000 and the fair market value at the time of donation was $16,000.
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Q 1: For the first part of the question the loan would qualify as a tax deduction because its under the $100K yearly total; 420K - 340K = 80K. So he can deduct up to 80,000 meaning hell have to pay interest on the remaining 10,000 of the 90,000? And I assume it would on the schedule A form along with the $6,800 and $9,000?
Q 2: I assume its $10,000 + $16,000 = $26,000 in charity deductions?
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