QUESTION 10 Charlie is a cash basis taxpayer who is employed in the plumbing industry. This year his employer informed him that because of his large sales volume, as a bonus, he is entitled to a free trip to Hawaii Charlie asked his employer to give the trip to his parents since he is afraid of flying Identify the principle that will determine whether Charlie or his parents are taxed on the value of the trip to Hawaii Constructive receipt Assignment of income All of these Return of capital principle Wherewithal to pay QUESTION 11 Which of the following is a true statement? "Taxpayers may deduct interest on up to $1,000,000 of home equity debr "Taxpayers may only deduct interest on up to $1.500.000 of acquisition indebtedness" None of these is true interest on home equity debt up to $100,000 is deductible, even if the loan proceeds are used to buy a new car The deduction for investment interest expense is not subject to limitation QUESTION 10 Charlie is a cash basis taxpayer who is employed in the plumbing industry. This year his employer informed him that because of his large sales volume, as a bonus, he is entitled to a free trip to Hawaii Charlie asked his employer to give the trip to his parents since he is afraid of flying Identify the principle that will determine whether Charlie or his parents are taxed on the value of the trip to Hawaii Constructive receipt Assignment of income All of these Return of capital principle Wherewithal to pay QUESTION 11 Which of the following is a true statement? "Taxpayers may deduct interest on up to $1,000,000 of home equity debr "Taxpayers may only deduct interest on up to $1.500.000 of acquisition indebtedness" None of these is true interest on home equity debt up to $100,000 is deductible, even if the loan proceeds are used to buy a new car The deduction for investment interest expense is not subject to limitation