Business, 23.07.2019 00:30, edgardo34

Patricia purchased a home on january 1, 2017 for $1,350,000 by making a down payment of $100,000 and financing the remaining $1,250,000 with a 30-year loan, secured by the residence, at 6 percent. during year 2017 and 2018, patricia made interest-only payments on the loan of $75,000. what amount of the $75,000 interest expense patricia paid during 2018 may she deduct as an itemized deduction? (assume not married filing separately.)

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answered: perezriii4133

The amount that is available as an itemized deduction is $ 60,000

Explanation:

GIVEN INFORMATION - PURCHASE = $1350,000

DOWN PAYMENT = $100,000

Rest of the amount ( $1250,00 ) was financed with a 30 year loan , which was secured by the residence and on which the interest is 6%.

INTEREST PAYMENTS MADE BY PATRICIA = $ 75,000

Now calculating the itemized deduction, the item which is allowed for deduction is on loan amount up to $1000,000 at the rate of 6% because the only deduction available here is home mortgage interest deduction(that is up to the debt amount of $1000,000 )

ITEMIZED DEDUCTION = LOAN AMOUNT X 6%

= $1000,000 X 6%

= $60000

answered: Guest

This sentence is false.

answered: Guest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

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Patricia purchased a home on january 1, 2017 for $1,350,000 by making a down payment of $100,000 and...