Question: Can I please get help with these Tax class questions Interest Expense questions In 2023, Peter borrowed $30,000 using half of the funds to buy

Can I please get help with these Tax class questions Interest Expense questions

  1. In 2023, Peter borrowed $30,000 using half of the funds to buy Disney stock and half to buy tax-exempt bonds. Assuming he paid $1,200 of interest in 2023, how does he report this on his tax return?
  2. The Hiendeburg's plan to remodel their home in early 2024. They will borrow $70,000 using equity in their home to make the improvements. They already have acquisition debt of $690,000. What is the tax treatment of the interest on this debt? Explain.
  3. Selena borrowed $490,000 + used $180,000 of her savings to build a home to use as her principal residence. Construction began on 6/2/21 and the home was completed on 8/4/23. The debt is secured by the land and construction.
    1. May Selena deduct the interest incurred during the construction period? Explain. Hint: Does she have a qualified residence? Do any special rules apply?
    2. On 9/2/23, Jenny borrowed $80,000 secured by her new home. What type of debt is this? Explain.
  4. The Nguyens have the following debt on their principal residence that was all borrowed before December 2017 and secured by the residence:

Acquisition debt $660,000 interest rate is 4%

Debt for home improvements $200,000 interest rate is 6%

Home equity debt $ 40,000 interest rate is 6.5%*

*The equity debt was used to pay credit card bills and other personal debt. The Zhangs tell you that 24 days before borrowing this money, they sold their Oracle stock for $50,000 and purchased Meta stock using those funds.

Assuming simple interest, how much interest expense can the Zhangs deduct in 2023? Explain.

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