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3 years ago

Which item(s) are tax deductible for consumers who are buying or renting a home?

Business

2 answers:

castortr0y [4]3 years ago

6 0

A deductible expense is one you can subtract from your taxable gross income.

For consumers who are buying or renting a home deductible tax is the interest and property tax portions of your mortgage payment, medical bills, etc. After you purchase a home, you are allowed to deduct all of your interest payments on any mortgage up to $750 million.

Mumz [18]3 years ago

5 0

You can deduct the interest and property tax portions of your mortgage payment, medical bills, etc.

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Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, G

olchik [2.2K]

Answer:

The appropriate answer is "$9,300".

Explanation:

The given values are:

FMV,

= $31,000

Adjusted basis,

= $15,500

Encumbered mortgage,

= $9,300

Now,

The Gerald's outside basis will be:

= $Adjusted \ basis-Encumbered \ mortgage+Share \ of \ mortgage$

On substituting the given values, we get

= $15,500 - 9,300+(\frac{9,300}{3})$

= $15,500 - 9,300 + 3,100$

= $18,600-9,300$

= $9,300$ ($)

7 0

3 years ago

A simultaneous increase in both unemployment and inflation is most likely to be the result of a(n): Group of answer choices decr

sesenic [268]

Answer: Decrease in the short run aggregate supply. increase in long run aggregate supply

Explanation:

assuming the wage stays constant in the short run (price of labour), an increase inflation/general prices will lead to a decrease in the Supply of labour because the current wage is no longer enough to cover the same number of goods people used to buy which will then increase Unemployment. The Labor market will experience a situation where inflation and unemployment are increasing at the same time

The Supply of Labour will increase in the Long run because the wage price will have sufficient time to adjust and increase to a new equilibrium level. .an increase in wage price will increase the quantity of supplied.

8 0

3 years ago

Your firm is considering a project that will cost $ 4.548 million up front, generate cash flows of $ 3.50 million per year for

Alika [10]

Answer:

(a) It will have multiple IRRs

(b) The MIRR calculated is 10.18% . Going by MIRR result , this project will only generate returns that is equal to cost of capital(10%) .If there are other avaible more viable projects, it should be rejected ( Please see attached computation).

Explanation:

(a) The multiple IRRs occurs when cash flows change sign and result in more than one value for the IRR.

Application of IRR to value an investment is only suitable when the project has normal cash flows, i.e a negative initial cash flow (i.e initial investment) followed by a series of positive cash flows.

In this scenario, we have negative cash flow of $6m in year 4 which occured after positive cash flow of $3.5m per year from year 1 to 3. This typically make IRR unreliable. To overcome this limitation , we can use Modified Internal Rate of Return (MIRR)

(b) Please see attached for more details.

Download xlsx

4 0

3 years ago

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance

kondor19780726 [428]

Explanation:

The computation is shown below:

1. Average operating assets is

= (Opening operating assets + closing operating assets) ÷ 2

where,

Opening operating assets is

= Total assets - Land (undeveloped) - Investment in Buisson, S.A

=$2,020,000 - $180,000 - $250,000

= $1,590,000

And, the closing operating assets is

= Total assets - Land (undeveloped) - Investment in Buisson, S.A

= $2,100,000 - $170,000 - $280,000

= $1,650,000

So, average operating assets is

= ($1,590,000 + $1,650,000) ÷ 2

= $1,620,000

Margin = Net operating income ÷ Sales

= $405,000 ÷ $4,050,000

= 0.1 or 10%

Turnover is

= Sales ÷ Average operating assets

= $4,050,000 ÷ $1,620,000

= 2.5

Return on Investment = Margin ×Turnover

= 0.1 × 2.5

= 0.25 or 25%

3. Residual Income = Net operating Income - (Average operating assets × Minimum required rate of return)

= $405,000 - ($1,620,000 × 15%)

= $405,000 - $243000

= $162,000

3 0

3 years ago

The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2015:

ivolga24 [154]

Answer:

TNL System Journal entries

Date Description DR CR

$'million $'million

a. Feb 5 Treasury Stock 66

Cash 55

Being the purchase of own shares

b. July 9 Cash 26

Treasurt Stock 22

Paid -in- Capital -share repurchase 4

Being the resale of treasury stock

c. Nov 4 Cash 16

Paid - in-capital- share repurchase 5

Retained earnings 1

Treasury stock 22

Being the resale of treasury stock below the cost

2. Balance Sheet as at December 31, 2018

$'million

Equity

Common stock, 230 ,illion shares at $1 230

Paid-in-excess capital of par 1,830

Retained Earnings ( 1,400 - 1 -1,399) -

2,060

Treasury Stock (22)

Total Equity 2,038

Explanation:

3 0

3 years ago