Frank, age 38, is a single taxpayer and is the sales manager of Standard Co., an auto
Question:
Frank, age 38, is a single taxpayer and is the sales manager of Standard Co., an auto stereo dealer. Frank\'s adjusted gross income (AGI) for the year is $67,000.
During the year, Frank made the interest payments shown in the following table. Enter the amounts that are reportable interest expense deductions, if any. If none of a particular payment is a reportable interest expense deduction, enter a zero (0) for that expense. Enter the total amount deductible on Schedule A, Itemized Deductions, of Form 1040, U.S. Individual Income Tax Return
Note: Disregard all AGI limitations, if any, in completing the first section of this table. Then follow the instructions in the table in completing the second section. Assume that the $1,000,000 limitation on mortgage indebtedness is not exceeded.
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| A | B | C | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 1 | Interest payment | Amount | Amount reportable on Schedule A | ||||||
| 2 | Mortgage interest paid on principal residence | 11,400 | 123 | ||||||
| 3 | Points on 30-year mortgage for the purchase of the principal residence paid on June 30 of the current year | 4,200 | 123 | ||||||
| 4 | Mortgage interest paid on commercial rental property | 2,150 | 123 | ||||||
| 5 | Interest paid on personal credit cards | 470 | 123 | ||||||
| 6 | Interest paid to IRS for late filing of income tax return | 25 | 123 | ||||||
| 7 | Interest paid on a $50,000 home equity loan; the FMV of the home exceeds the acquisition indebtedness by $70,000 | 475 | 123 | ||||||
| 8 | Total | 18,720 | 123 | ||||||
In the following section, indicate the dollar amount of any limitations that apply to the expenses above. Enter any limitation as a negative number.
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| A | B | |||||||
|---|---|---|---|---|---|---|---|---|
| 1 | Total amount from table above | 123 | ||||||
| 2 | AGI limitation (in dollars) | |||||||
| 3 | Total amount deductible on Schedule A | |||||||
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