Mary started 2019 by purchasing a new home in January. Her house had a purchase price of
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Mary started 2019 by purchasing a new home in January. Her house had a purchase price of $900,000. She paid $100,000 in cash and took out an $800,000 recourse mortgage to cover the remainder of the purchase price. In June of that year, Mary took out an additional recourse loan of $200,000, also secured by the home. She spent $70,000 of the proceeds from the June loan improving her kitchen, and used the remaining $130,000 to buy a Range Rover
Describe the tax consequences of each of the above to each of the parties involved.
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
Posted Date: