Question 7

Using the following information to answer question 8 and 9:

A homeowner paid the following expenses in the current tax year:

+ Mortgage interest: $13,224

+ Property taxes:$3,600

+ Lawn maintenance: $1,380

+ Installed gutters and downspouts: $903

If the homeowner is in the 31% tax bracket, calculate the tax savings realized by itemizing allowable deductions.

Group of answer choices

$5,216.44 tax savings.

$5,217.44

$5,215.44 tax savings.

$5,218.44

Question 8

Assume the homeowners paid $211,000 for the home in the previous tax year. The homeowners financed $145,000 of the purchase price and paid 1.5 points at closing. Calculate the homeowners' adjusted basis.

Group of answer choices

$215,078 adjusted basis.

$213, 175 adjusted basis.

$217,078 adjusted basis.

$216,078 adjusted basis.

Question 9

A standalone commercial property was purchased for $289,000. According to the property tax rolls for the year purchase, the ratio of land t total value is 25%. Calculate the depreciable basis of this property and the annual depreciation allowance.

Group of answer choices

$5,557.69 annual depreciation.

$5,757.69 annual depreciation.

$5,857.69

$5,657.69 annual depreciation.