If property owners fail to pay their taxes in a timely fashion this can create a first lien on the mortgaged property. In order
to protect against this lenders often require that borrowers add what fraction of their estimated tax bill to their required monthly mortgage payments?
The above case relates to the closing cost. Closing costs refers to the expenditures that investors and vendors usually pay to conclude a property investment sale, above and beyond the price of the land.
Costs involved can comprise mortgage origination payments, concession points, assessment fees, title checks, homeowner's insurance, assessments, taxes, deed-recording fees and credit report fees. Prepaid expenses, such as property taxes and homeowners' insurance, are those that recur over time.
c.A fire at a personal residence and the outbuildings on the property
Explanation:
The tax deductible for loss are all those caused by a circumstantial event and unexpected but that is identifiable and can be proven. According to IRC, there are 3 types of losses that may apply: Disaster Area Losses, Casualty Losses and Theft Losses. Also the IRC stated that the loss should not have been compensated by the insurance and must be assumed during the taxable year.
According to the above, the event that would apply for a deductive loss would be answer C) A fire at a personal residence and the outbuildings on the property since it is a Casualty Loss.
Since the cost of $20,000 has been incurred two years ago, the firm should check and see as to how many units of the product were produced in the two years. Did the firm produce enough items to break even the cost of acquisition. Additionally the business should also check the current market value of this two year old equipment. The business manager should weigh in the savings that is to be obtained from outsourcing along with the resale value of the old machine and then take a declension as to whether the company should go for outsourcing. Also, the business manager must examine whether the outsourcing can happen for the long run. This is because two years down the line, outsourcing may have increased the cost and again another process may look attractive. So a through cost benefit analysis should be made before taking a decision.
Brendon Inc. required a permit to open its business in the country of Cadmia. Although it had met all the requirements for the permit, the officials concerned delayed providing Brendon Inc. with the permit. To expedite the process, the company made a payment to a customs official. Which type
of payment is this an example of?
Answer: Facilitation
Explanation:
Brendon Inc payment to the custom official in order to speed up the process for them to obtain a permit, is a form of facilitation payment. A facilitation payment is a kind payment made to speed up a process that would otherwise have taken a longer time.