Problem $12$ On January $1,2024,$ Isabelle closed on the purchase of a newly constructed home in Virginia Beach for a total purchase price of $\backslash (\backslash$$ $1,000,000\backslash ).$ To pay for the home, Isabelle received a gift from her grandmother of $\backslash (\backslash$$ $150,000\backslash )$ and borrowed $\backslash (\backslash$$ $850,000\backslash )$ from Towne Bank. In gathering her tax information for you to prepare her $2024$ tax return, Isabelle brought you a form $1098$ which indicated mortgage interest of $\backslash (\backslash$$ $51,000\backslash )$ or $\backslash (\backslash$$ $850,000\backslash )$ times $\backslash (6\backslash \%\backslash ).$ Required $-$ If Isabelle itemizes her $2024$ deductions, what amount of mortgage interest will she be able to deduct. $-$ Where on page $1$ of her $2024$ federal $1040$ or on an attached schedule will Isabelle report the gift from her grandmother? Problem $13$ Rick, who files his tax returns using the filing status Single, sold his primary residence on January $1,2024,$ for a net sales price of $\backslash (\backslash$$ $500,000\backslash ).$ Rick had purchased the home and used it as his primary residence commencing on January $1,2023.$ This is the first home that Rick ever owned, and he paid $\backslash (\backslash$$ $200,000\backslash )$ for the home and had not made any improvements to the residence. Required $-$ Based solely on the preceding information, calculate the taxable amount, if any, of the gain on the sale of his personal residence. Problem $14$ On December $31,2024,$ Jacob sold a vacant lot to an unrelated individual for $\backslash (\backslash$$ $500,000\backslash ),$ net of transaction expenses. The terms of the sale provided for a $\backslash (\backslash$$ $50,000\backslash )$ down payment with the balance of $\backslash (\backslash$$ $450,000\backslash )$ financed by Jacob for $3$ annual payments of $\backslash (\backslash$$ $168,350\backslash ),$ inclusive of interest at an annual interest rate of $\backslash (6\backslash \%\backslash ),$ with the first payment due $12\mathrm{.}31\mathrm{.}25.$ Jacob purchased the vacant lot $5$ years ago for a total cash purchase price of $\backslash (\backslash$$ $200,000\backslash ).$ Required Based solely on the preceding, calculate the amounts to be included on Jacob's tax return for the years $2024,2025,2026,$ and $2027.$ Note, Jacob does not have any other capital gains or losses, and it is not necessary $($for the purpose of this problem$)$ to complete forms $6252$ or Schedule D