-On September 1 of the current year, Lamonte refinances his home and borrows $450,000. Lamonte is required to pay two points on the loan. The loan is secured by the residence and the charging of points is an established business practice in the area. The term of the loan is 30 years, beginning on September 1 of the current year. How much, if any, of the points may Lamonte deduct in the current year (rounded)?

A) $100

B) $2,500

C) $450

D) $9,000

-Rhianna sells stock with an adjusted basis of $65,000 to her son, Kanye, for its fair market value of $45,000. Kanye sells the stock two years later for $50,000. Kanye will recognize a gain on the subsequent sale of

A) $0.

B) $5,000.

C) $15,000

D) $20,000

-Ramina died on November 2, 2017, when she owned securities with a basis of $60,000 and a FMV of $85,000. Nick inherited the property and sold it on December 19, 2017, for $90,000. What is Nick's reported gain on this sale?

A) $4,000 STCG

B) $5,000 STCG

C) $5,000 LTCG

D) $25,000 LTCG

-Sam, a calendar-year taxpayer, owns 100 shares of Stone Corporation stock, which was purchased two years ago for $15,000. Sam sells all 100 shares on December 31, of the current year (2017), for $10,000 and on January 15 (2018), of the following year, purchases 60 shares of Stone Corporation stock. Sam's recognized loss will be

A) $0

B) $1,000.

C) $2,000.

D) $5,000.

-In June of the current year, Leticia began investigating the possibility of opening a boutique health club. From June through September, she spent $1,500 on a market survey, $3,000 in consulting fees to find the best location and $4,100 in professional fees setting up an accounting and inventory system. Although she had never run her own business before, on October 1 she opened his doors for business. What is the maximum amount of deduction for the current year attributable to these expenditures?

A) $0

B) $5,040

C) $5,060

D) $7,700