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- When taxpayers borrow money to acquire investments, the interest expense they pay on the loan is and the deduction is limited to the taxpayer's income for the year. expenseWhich of the following can be deducted as interest expense? Interest on personal debt Interest on debt from a related creditor Imputed interest on capital Interest on assessed tax delinquency ANSWER:What is the correct treatment of advance payment made by the lessee to the lessor? A. None of the above B. If the advance payment representing loan is intended to be applied to unpaid rent, the amount is part of the debtor/lessor’s taxable income at the time of receipt of said amount. C. If the advance payment represents security deposit, the amount is part of the lessor’s taxable income. D. If the advance payment represents loan, the amount is part of the lessor’s taxable income.
- Which of the following types of interest is not deductible? a.Qualified mortgage interest on residence b.Credit card interest c.Qualified mortgage interest on second residence d.All of these choices are correct. e.None of these choices are correct.TRUE OR FALSE Interest expense paid on a loan which has prescribed is deductible from gross income of the payorWhich of the following statements regarding the tax deductibility of points related to a home mortgage is correct? (See image for answers)
- During the accumulation period, how is the interest credited to an annuity generally taxed in regard to its owner, if the owner is an individual? A) Taxed as ordinary income B) It is tax-deferred and excluded from current taxation Oc) Taxed as capital gains D) Treated as tax losses1. All of the following are examples of legal liabilities, except for a. notes payableb. sales tax payablec. sick pay payable (may be taken as time off)d. property taxes payableQuestion 1 Rules of the internal revenue service concerning the deductibility of points on a mortgage DO NOT include, A for a buyer to deduct points the seller paid to reduce his cost basis B Points paid to refinance the property to be fully deductible in the year paid C points paid by the seller to be considered a selling expense D points to be deductible as interest to be paid directly to a lender question 2 which of the folloeing would actually be included in an annual property operating statement of a potential real estate investment A economic base analysis B managment fee C comparative market analysis D investor`s earning potential
- Which of the following statements is false? Group of answer choices A.Prepaid expenses are fully deductible when paid for a cash basis taxpayer. B.Reasonableness is most often considered in the context of compensation. C.Inventory can not be deducted when paid. D.You are considered to have paid at the date you pay with a credit card, even though you still owe the bank.While earnings on assets held in a Tax Free Savings Account (TFSA) will not be taxed while the assets are in the plan, the accumulated income will be subject to tax when it is withdrawn from the plan. True or False1. Bad debt is an expense in the books of accounts when a provision is made for it. Such amount should likewise be deducted from gross income to arrive at taxable income. 2. The phrase "actually charged off from taxpayer's book of accounts" means that the amount of money lent by the taxpayer (in the course of his business, trade or profession) to his debtor that had been recorded in the books of account as receivable has actually become worthless as of the end of the taxable year, and that the said receivable has been cancelled and written off from the said taxpayer's books of accounts. A= 1st statement is true, second statement is false. B= 1st statement is false, second statement is true. C= Both statements are false. D= Both statement are true. с B OA D
