These are practice problems for a test, and I'm a little confused on two of them.Any help would be greatly appreciated!During 2010, Angela sustains serious injuries from a snow skiing accident.She incurs the following expenses: Doctor bills of 11,700, hospital bills of 9,400, and legal fees against the ski resort of 3,000.Angela is single and has no depends.During 2010, her salary is 58,000.She pays 600 in medical and dental insurance premiums, 2,750 in mortgage interest on her home, and 1,200 in interest on her car loan.Her health insurance provider reimburses her for 10,000 of the medical expenses.What is her 2010 taxable income?The second question: During the current year, Tina purchases a beachfront condo for 600,000, paying 150,000 down and taking out a 450,000 mortgage, secured by the property.At the time of the purchase, the outstanding mortgage on her principal residence is 700,000.This debt is secured by the residence and the FMV of the principal residence is 1,400,000.She purchased the principal residence in 1997.What is the amount of qualified indebtedness on which Tina may deduct the interest payments?Thanks!
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Do her medical expenses exceed 7% of her income?Anyway, just wanted to tell you H&R block has a free website for tax questions and answers.
Source
Jim Beam Bacon Mustard, 11-Ounce (Pack of 6)
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