The lender has to recognize interest income thats

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low, interest rates. The lender has to recognize interest income that’s equal to the IRS imputed interest and the borrower has an implied interest payment to the lender. 24. I don’t understand Chapter 4: 7. Fritz: 2000 Tad: 2000 @ 30% discount @ 20% discount $600 saved $400 saved Since the savings plan favors key employees, Fritz must include the $600 in his gross income. But, Tad (the unflavored) odes not have to include his $400 in his gross income. 14. Initial IRA limit: $5,000+$1,000 (due to 50+)=$6,000 Reduction factor: [($175,520 – $173,000)/$10,000] x $6,000 =$1,512 Contribution limit:
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$6000-$1512= $4,488, rounded to the nearest $10 = $4,490 So, the maximum amount each can invest in their respective Roth IRAs is $4,490. 19. Jimmy’s moving expenses: Expenses of moving household items 4,500 Travel and lodging for family in moving 345 Meals en route 72 Pre-move house-hunting trips 925 Temporary living expenses in new location 700 Real Estate commission on sale of old home +12,000 Total Moving Expenses $18,542 However, not all of these expenses are deductible: Expenses of moving household items 4,500 Travel and lodging for family in moving 345 Meals en route 72 Pre-move house-hunting trips 925 Temporary living expenses in new location 700 Real Estate commission on sale of old home +12,000 Total Moving Expenses $18,542 Total Deductible Moving Expenses $4,845
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