George recently received a great stock tip from his friend, Mason. George didn’t have any
cash on hand to invest, so he decided to take out a $20,000 loan to facilitate the stock
acquisition. The loan terms are 8 percent interest with interest-only payments due each year
for five years. At the end of the five-year period the entire loan principal is due. When George
closed on the loan on April 1, 2018, he decided to invest $16,000 in stock and to use the
remaining $4,000 to purchase a four-wheel recreation vehicle. George is unsure how he will
treat the interest paid on the $20,000 loan. In 2018, George paid $1,200 interest expense on
the loan. For tax purposes, how should he treat the 2018 interest expense? (Hint: Visit
www.irs.gov and consider IRS Publication 550)
George recently received a great stock tip from his friend, Mason. George didn’t have any cash...
eorge recently received a great stock tip from his friend, Mason. George didn’t have any cash on hand to invest, so he decided to take out a $37,000 loan to facilitate the stock acquisition. The loan terms are 8 percent interest with interest-only payments due each year for five years. At the end of the five-year period the entire loan principal is due. When George closed on the loan on April 1, 2018, he decided to invest $22,200 in stock...
Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as a deductible medical expense? A. Cost of long-term care for a developmentally disabled person in a relative’s home. B. Special school for a deaf child to learn lip reading. C. Cost of elevator installed for individual who had heart bypass surgery (in excess of increase in value of individual’s home). D. Cost and care of guide dogs used by a blind person in his...
Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first summer job. Even though his parents are claiming him as a dependent he wants to file a return in order to get his refund. He receives his W-2 and decides he can do his own return using form 1040-EZ. Which of the following information is not found on a Form W-2? a) The taxpayer’s Social Security number b) The taxpayer’s wages, tips and other...