A new home was sold for $400,000 in Hillsborough County. The buyer took out a mortgage for $300,000 and paid the rest in cash. The buyer agrees to pay for all three state transfer taxes (documentary stamp on the deed, promissory note, and the intangible tax on the new mortgage). How much will the buyer owe in state transfer taxes? $5,030 $2,800 $4.450 $4.150
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- On June 30, 2019, Kelly sold property for 240,000 cash and a 960,000 note due on September 30, 2020. The note will also pay 6% interest, which is slightly higher than the Federal rate. Kellys cost of the property was 400,000. She is concerned that Congress may increase the tax rate that will apply when the note is collected. Kellys after-tax rate of return on investments is 6%. a. What can Kelly do to avoid the expected higher tax rate? b. Assuming that Kellys marginal combined Federal and state tax rate is 25% in 2019, how much would the tax rates need to increase to make the option identified in part (a) advisable?Betty borrowed $200,000 at an interest rate of 10% p.a. from XYZ bank to purchase the goodwill, premises, equipment and stock of a cookware shop. As security for the loan, she was required to mortgage her holiday home. Please discuss, with reference to case authority, whether the purchase of the goodwill, premises, equipment and stock would be deductible?Stephen purchased a rental property on 03 August 2020 and has rented the property from this date.He incurred the following expenses when purchasing the property –> $6,320 Lender’s Mortgage Insurance> $15,987 Stamp duty on transfer of the property> $1,500 Mortgage broker’s fee> $750 Conveyancing fees> $600 Bank loan establishment fee> $700 Stamp duty on the mortgageCalculate how much Stephen can claim in borrowing costs for the 2021 year and select the correct answer below. $1,766 $1,658 $1,311 $1,442 $1,879
- Hw.145. Francisco paid the following taxes in 2022: !"$6,000 property taxes on their personal residence !"$500 property taxes on their personal automobile !"$3,000 property taxes on business property !"$10,000 federal income taxes !"$5,000 state income taxes !"$6,000 employment (FICA) taxes !"$2,000 sales/use tax What amount of taxes can Francisco deduct as an itemized deduction in 2022? What amount of taxes could Francisco deduct as an itemized deduction if the taxes were paid in 2026?A taxpayer gets a $1,000 check from the California lottery for winnings, and wins another $5,000 in Nevada on a casino trip. What amount is taxable to the State of California? 0 1000 5000 6000Joe Taxpayer had state withholding of $30,000, dmv of $1000, property taxes of $6,000. What is the net state and local deduction? Part II: Joe calls and wants to know how much paying his second installment of property taxes of $5,000 will save him. Assume he is in the 30% marginal bracket.
- If the executor needs to pay a debt at the time of a decedent's death, which of the following options will cost the least? Use the decedent's cash Sell something Borrow money Special IRS extension provisions Life insurance If your estate has to pay an estate tax, what is the tax rate? 40% of the unified credit. 40% of the equivalent exemption. The amount of the unified credit in the year of death 40%.28. John Jay paid interest expense of $12,000 on his personal residence original first mortgage this year and $5,000 on a $100,000 home equity credit line also secured by a mortgage on his home Half of the home equity credit line loan proceeds were used to put a new roof on the home and the other half was used to purchase a new car. Assuming the acquisition and home equity limits are not exceeded, how much of the total interest expense is deductible on John's Schedule A as qualified home mortgage interest? O$17,000 O$14,500. O$12,000 29 The Browns borrowed $30,000, secured by their home, to pay their son's college tuition. At the time of the loan, the fair market value of their home was $400,000, and it was unencumbered by other debt. The interest on the loan is treated for itemized deductions as ODeductible points. ONon-deductible home equity (mortgage) interest. ODeductible home equity (mortgage) interest.During the current year, Mr. and Mrs. West paid the following taxes: Property taxes on residence $1,900 Special assessment for installation of a sewer system in their neighborhood $1,000 State personal property tax on their automobile (based on value) $400 Property taxes on land held for long-term appreciation $600 What amount can the Wests deduct as property taxes in calculating itemized deductions for the current year? a.$0 b.$2,300 c.$2,900 d.$1,900 e.None of these choices are correct.
- Answer with explanation. 1. On March 6, 2022, a Filipino citizen donated house and lot with fair market value of P500,000 to his illegitimate child on account of marriage on January 1, 2022. return was filed and tax paid on July 5, 2022. (Assume a 10% legal interest rate for loans). The donor's tax due, including increments, as of July 5, 2022 is: a. P15,000 b. P15,750 c. P19,500 d. P23,250Carol pays a county personal property tax on her automobile of $1,500. The $1,500 includes $700 based on the weight of the car and $800 based on the value of the car. How much of the tax can Carol deduct on her tax return? $800 $1,500 $700 $0Required information [The following information applies to the questions displayed below.] Charles has AGI of $45,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land County real estate tax on the land School district tax on the land $ 1,220 2,330 954 City special assessment on the land (new curbs and gutters) State tax on airline tickets (paid on vacation) Local hotel tax (paid during vacation) 957 216 293 Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances: (Leave no answer blank. Enter zero if applicable.) a. Suppose that Charles holds the land for appreciation. X Answer is complete but not entirely correct. Deductible taxes from $ AGI