Which of the following types of taxes are deductible in 2018? Which are deductible FOR and...

Which of the following types of taxes are deductible in 2018? Which are deductible FOR and which FROM AGI?

1. Property tax on real estate

2. Real property taxes on residence

3. Interest on home mortgage

4. Interest paid on a personal residence

5. interest paid on a note to the bank 3/4 of which was used to buy state and municipal bonds, the rest 1/4 to buy stock

Solutions

Expert Solution

Claiming Home Mortgage Interest

You must itemize your deductions on Form 1040, Schedule A to claim mortgage interest. This means foregoing the standard deduction for your filing status—it's an either/or situation. You can itemize or you can claim the standard deduction, but you can't do both.

Schedule A also covers many other deductible expenses, however, including real estate property taxes, medical expenses, and charitable contributions. Sometimes all these add up to more than the standard deduction for your filing status,

making it worth the time and effort to itemize your deductions. Otherwise, you'll save more tax dollars by skipping the home mortgage interest deduction and claiming the standard deduction instead.

This might be the case in 2018 and going forward through 2025 when the TCJA is set to expire unless Congress renews it. As of 2019, the standard deduction is $6,500 for single taxpayers and married taxpayers who filed separate returns.

It is $13,000 for married taxpayers who filed jointly and for qualifying widow(er)s, and $9,550 for those who qualified as head of household.

The TCJA nearly doubles these standard deductions. They're now $12,000 for single filers and married filers of separate returns, $18,000 for those who qualify as head of household, and $24,000 for married taxpayers

filing joint returns and qualifying widow(er)s. As a result, it might become more unlikely that you'll have enough itemized deductions overall to surpass the standard deduction you're entitled to.

It's usually advisable to complete Schedule A and compare the total of your itemized deductions to your standard deduction to find out which method is most advantageous for you.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Q1 Which of the following taxes is not deductible? Select one: a. Goods and Services Tax...

Q1 Which of the following taxes is not deductible? Select one: a. Goods and Services Tax b. None of the answers are correct c. Payroll tax e. Fringe Benefits Tax Which of the following amounts is fully deductible? Select one: b. Regular giving of $50 per week to the local church d. A gift of $4,000 to a political party e. A gift of $3,000 cash to a Deductible Gift Recipient Q3 Which of the following transactions is fully deductible?...

Are these items deductible or not deductible? a. Deductible b. Not deductible state income taxes Interest...

Are these items deductible or not deductible? a. Deductible b. Not deductible ____state income taxes ____Interest on a 2018 mortgage loan of $750,000 ____Real estate taxes ____$67 in credit card interest ____$ 576 interest on a bank loan ____FICA withheld by employer ____federal gasoline tax ____federal excise tax ____loan fee for appraisal ____local income tax ____$500 to family physician (disregard limits) ____$2000 for long term care (disregard limits) ____$400 for eye glasses (disregard limits) ____$300 for maternity clothes ____$50 donation...

Which one of the following is not tax deductible? Select one: a. Local income taxes b....

Which one of the following is not tax deductible? Select one: a. Local income taxes b. All of these are tax deductible c. State income taxes d. Property taxes e. Real estate taxes

Other itemized deductions: Taxes Taxes are deductible on Schedule A. What kind of taxes are included...

Other itemized deductions: Taxes Taxes are deductible on Schedule A. What kind of taxes are included in this category? Can we deduct our federal taxes here? Why or why not? What happens if I deduct my state income taxes in one year and get a refund next year? Do I have to include this in income? Recall the tax benefit rule

Name three types of taxes and analyze the deadweight loss of each. Which of these taxes...

Name three types of taxes and analyze the deadweight loss of each. Which of these taxes do you believe create the highest deadweight loss? Why? Why is deadweight loss disagreed on by experts? Explain.

1) To what extent would the following taxes be deductible by Married Couple under § 164?...

1) To what extent would the following taxes be deductible by Married Couple under § 164? c) A local property tax of $10,000 for which Married Couple became liable as owners of Blackacre on January 1, but which Buyer agreed to pay half of when Buyer acquired Blackacre from Married Couple on July 1. d) A Federal income tax of $20,000 e) A state income tax of $7,000, a state sales tax of $1,000, and a local property tax of...

Which of the following is not deductible as an Itemized Deduction if paid in the current...

Which of the following is not deductible as an Itemized Deduction if paid in the current year. A: Personal Property Taxes B: Real Estate Taxes C: Special Assessment Taxes D: State Withholding Taxes

explain the circumstances when losses incurred by individuals are deductible. What types of losses are deductible...

explain the circumstances when losses incurred by individuals are deductible. What types of losses are deductible by individuals? Are there any special circumstances or limitations that apply to deducting these losses? Give some specific examples.

MPQ: Different Types of Taxes a. A progressive tax is one in which

MPQ: Different Types of Taxesa. A progressive tax is one in whichthe average rate increases as income increases.the average rate decreases as income increases.the average rate is constant as income increases.more taxes are paid as income increases.b. A regressive tax is one in whichthe average rate decreases as income increases.the average rate is constant as income increases.the same taxes are paid as income increases.the average rate increases as income increases.c. A proportional tax is one in whichthe average rate decreases...

In 2018, Dave is in an indemnity medical plan with a $1,800 annual deductible and an...

In 2018, Dave is in an indemnity medical plan with a $1,800 annual deductible and an 90/10 split after the deductible. So the Coinsurance is 90% a. On 2/15/2018 Greg injuries his arm and goes to the emergency room. The cost of his visit is $1,500. How much of that bill is Greg’s responsibility? b. On 4/13/2018 Dave falls off a ladder and breaks his leg. His hospital stay costs $9,000. How much of the bill is Dave’s responsibility?

Subjects