ZuoTi.Pro
Question

Amanda purchased a home for $700,000 in 2016. She paid $140,000 cash and borrowed the remaining...

Amanda purchased a home for $700,000 in 2016. She paid $140,000 cash and borrowed the remaining $560,000. This is Amanda's only residence. Assume that in year 2021 when the home had appreciated to $1,050,000 and the remaining mortgage was $420,000, interest rates declined and Amanda refinanced her home. She borrowed $700,000 at the time of the refinancing, paid off the first mortgage, and used the remainder for purposes unrelated to the home. What is her total amount of her amount of acquisition indebtedness for purposes of determining the deduction for home mortgage interest? (Assume not married filing separately.)

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

In 2021 her remaining mortgage was $420,000,

also, $100,000 is available for qualified home equity indebtedness.

The total amount of her amount of acquisition indebtedness for purposes of determining the deduction for home mortgage interest is her remaining mortgage amount.

$420,000

1 0
Add a comment
Know the answer?
Add Answer to:
Amanda purchased a home for $700,000 in 2016. She paid $140,000 cash and borrowed the remaining...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Jessica purchased a home on January 1, 2018 for $680,000 by making a down payment of...

    Jessica purchased a home on January 1, 2018 for $680,000 by making a down payment of $270,000 and financing the remaining $410,000 with a 30-year loan, secured by the residence, at 6 percent. During 2018 and 2019, Jessica made interest-only payments on this loan of $24,600 (each year). On July 1, 2018, when her home was worth $680,000 Jessica borrowed an additional $170,000 secured by the home at an interest rate of 8 percent. During 2018, she made interest-only payments...

  • Betty just purchased a home. She took out a mortgage of $600,000 amortized over 30 years...

    Betty just purchased a home. She took out a mortgage of $600,000 amortized over 30 years at a rate of j2=4% with monthly payments. After 4 years, she refinanced her mortgage at a rate of j2=3.8% for the remaining 26 years. Calculate her new monthly payment after refinancing. Round all of your loan payments up to the next cent. On your worksheet, clearly label and show your work for each step (formulas or calculator inputs). Your Answer: Answer

  • Patricia purchased a home on January 1, 2017 for $1,310,000 by making a down payment of...

    Patricia purchased a home on January 1, 2017 for $1,310,000 by making a down payment of $100,000 and financing the remaining $1,210,000 with a 30-year loan, secured by the residence, at 6 percent. During year 2017 and 2018, Patricia made interest-only payments on the loan of $72,600. What amount of the $72,600 interest expense Patricia paid during 2018 may she deduct as an itemized deduction? (Assume not married filing separately.)

  • Patricia purchased a home on January 1, 2017 for $1.310.000 by making down payment of $100.000...

    Patricia purchased a home on January 1, 2017 for $1.310.000 by making down payment of $100.000 and financing the remaining $1,210,000 with a loan. secured by the residence. 6 percent. From 2017 through 2019, Patricia made interest-only payments on the loan each year in the amount of $72.600. What amount of the $72,600 interest expense that Patricia paid during 2019 may she deductasan nemized deduction? (Assume not married filing separately.) Multiple Choice O $0. $12,600. $60,000 $72,600.

  • Patricia purchased a home on January 1, 2017 for $1,220,000 by making a down payment of...

    Patricia purchased a home on January 1, 2017 for $1,220,000 by making a down payment of $100,000 and financing the remaining $1,120,000 with a 30-year loan, secured by the residence, at 6 percent. During year 2017 and 2018, Patricia made interest-only payments on the loan of $67,200. What amount of the $67,200 interest expense Patricia paid during 2018 may she deduct as an itemized deduction? (Assume not married filing separately.) Multiple Choice A) $60,000. B) $7,200. C) $0. D) $67,200.

  • 1. Gary and Ann have just purchased a new home. They paid $40,000 as a down...

    1. Gary and Ann have just purchased a new home. They paid $40,000 as a down payment and obtained a $200,000 mortgage to pay for the rest. The 30-year mortgage has an interest rate of 0.5% per month. How much will they pay each month in principal and interest? Your answer must be correct to the nearest penny. 2. Jerry and Katrina took out a 30-year, $360,000 mortgage on their 2800-square-foot house. The mortgage rate is 0.4% per month so...

  • eBook A few years back, Dave and Jana bought a new home. They borrowed $230,415 at...

    eBook A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an annual fixed rate of 5.49% (15-year term) with monthly payments of $1,881.46. They just made their 25th payment, and the current balance on the loan is $208,555.87, Interest rates are at an all-time low, and Dave and Jana are thinking of refinancing to a n of-pocket costs of $2,937. The out-of-pocket costs must be paid in full at the time of refinancing Build...

  • explain please 6. Maria Conchita just realized the American dream: she bought her first home! During...

    explain please 6. Maria Conchita just realized the American dream: she bought her first home! During the year, she paid the following expenses related to this principal residence: real estate taxes allocated to her since the date of purchase $2,000; mortgage interest $5,000; interest on an unsecured loan for home improvements $1,000; fire and casualty insurance $1,200. Of these items, what amount is deductible on Schedule A as itemized deductions? a. $5,000 b. $7,000 c. $8,000 d. $9.200 _7. Which...

  • Keisha (50 years of age) is considering whether to participate in her company's Roth 401(k) or tr...

    Keisha (50 years of age) is considering whether to participate in her company's Roth 401(k) or traditional 401(k). This year, she plans to invest either $4,000 in a Roth 401(k) or $5,000 in a traditional 401(k). Keisha plans on leaving the contribution in the retirement account for 20 years when she will receive a distribution of the entire balance in the account. Her employer does not have a matching program for employee contributions to retirement accounts. Assume Keisha can earn...

  • 1. [5 points total] Drs. Bhattacharya and Malinowski are expecting their third child and therefore are...

    1. [5 points total] Drs. Bhattacharya and Malinowski are expecting their third child and therefore are in the market for a new, larger, home. They are looking at a traditional colonial style home with a swimming pool on Nottingham Terrace that will cost $999,000 to purchase. They are now comparing lending options and have identified two potential options. They have asked for your expert opinion to help them make an informed decision. Option A: A 30-year adjustable rate mortgage (ARM)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT