Ch 10 Homework Solutions

Ch 10 Homework Solutions - Ch 10 Homework Solutions 4 Helen...

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Ch 10 Homework Solutions 4. Helen may include the entire amount paid to the nursing home ($3,000 per month) if the primary reason for being in the nursing home is to get medical care. If the primary reason for being in the nursing home is personal, Helen may include only the $1,400 cost of medical care in calculating her medical expense deduction. p. 10-4 12. Julia can deduct mortgage interest on her principal residence and one of the two other residences. She should choose the one that will result in the highest interest deduction. Her deduction is limited to interest on up to (1) $1,000,000 of acquisition indebtedness and (2) $100,000 of home equity indebtedness. Julia should consider consolidating the three mortgages into two if possible. p. 10-16 17. Contributions are deductible only if made to a qualified charitable organization. The family would not qualify as a charitable organization, so Betty’s contribution will not be deductible. The church probably would be a qualified charitable organization. If so, Jack’s contribution will be deductible. p. 10-20 24. TAX FILE MEMORANDUM February 25, 2011 FROM: George Luce SUBJECT: Rita Smith’s medical expense deduction Rita Smith’s medical expense deduction is $12,600, determined as follows: Medical insurance premiums $ 7,400 Doctor and dentist bills for Larry and Shirley
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This note was uploaded on 05/31/2011 for the course ACCT 421 taught by Professor May during the Spring '11 term at IPR.

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Ch 10 Homework Solutions - Ch 10 Homework Solutions 4 Helen...

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