Question 29 Rita and Carl are both under the age of 65 and use the Married Filing Jointly filing status. Their AGI for tax year 2021 is $211,008. Their total Itemized Deductions are $24,708 (taxes and mortgage interest). How much could Rita and Carl deduct on their tax return either using the Standard Deduction or by using Itemized Deductions? Choose the deduction type that has the most benefit. a) $24,708 b) $27,800 c) $25,100 d) $12,550

Question 30 Rachel wants to prepare and file her own tax returns for the last two tax years. She soon realized that she could deduct some expenses without itemizing her deductions on Schedule A for the 2020 and 2021 tax years. Which of the following expenses qualify for such deductibility in 2020 and 2021? a) Charitable contributions. b) State and local property tax. c) Qualified Residence Loan. d) All the above.

Question 31 Bill became a homeowner for the first time in January of 2021; consequently, he acquired a mortgage loan for $950,000. He was immediately advised by his real estate agent that he could deduct home-mortgage interest from his income reported to the IRS. Bill is now planning ahead for the tax year, and asks you about the new limitations when it comes to deducting mortgage interest. Which of the following scenarios is the best and most relevant option for Bill? a) Bill may claim mortgage interest deduction on his primary home. b) Bill may claim mortgage interest deduction on his second home. c) Bill may claim mortgage interest on his home mortgage, limited at $750,000. d) Bill may deduct a home-equity secured credit line.

Question 32 Which of the following examples of homeowners who incurred home equity debt in 2021 are permitted to deduct their mortgage interest using Schedule A? (Best option) a) Paul, who used the mortgage funds to replace the roof on his residence. b) Martha, who used the mortgage funds to pay down her credit card debt. c) Jim, who used the mortgage funds to finance his grandchilds education. d) Donald, who used the money to pay for a vacation trip to Europe.

Question 33 Kate was eager about the advantages of the new TCJA law and rushed to buy a commercial property for her business. Considering the new TCJA law, what is the maximum percentage of qualified property (purchased and placed in service) in 2021 that a business owner like Kate may expense (depreciation)? a) 25% b) 50% c) 75% d) 100%

Question 34 Joshua and Mary have two children; Robert, age 15 and Marcia, age 19. They also claim Marys father (59), who is living apart, as a dependent. Joshua and Marys 2021 modified AGI is $78,000, and their tax liability is $5,953. They file Married Filing Jointly and claim all three qualifying dependents on their return. They also tell you that they did not receive any advance Child Tax Credit payments during the year. What is the amount of the Child Tax Credit that is refundable on Form 1040? a) $3,000 b) $4,000 c) $4,500 d) $6,000