After paying down the mortgage on their personal residence, the Hills have found that their itemized deductions for each year are always slightly less than the standard deduction option
a. Explain what has happened. b. What remedy do you suggest?
a.
Paying down the mortgage reduced the interest expense deduction. With less interest expense, the Hills' deductions from AGI no longer exceed the standard deduction amount.
b.
The Hills should begin concentrating their other itemized deductions (e.g., charitable contributions) by paying for multiple years in the same year. Being on a cash basis, the timing of the deduction is based on the year of payment. In alternate years, moreover, the standard deduction is claimed.
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Underfoot Products uses standard costing. The following information about overhead was generated during May: Standard variable overhead rate $2 per machine hour Standard fixed overhead rate $1 per machine hour Actual variable overhead costs $390,000 Actual fixed overhead costs $175,000 Budgeted fixed overhead costs $190,000 Standard machine hours per unit produced 10 Good units produced 18,000
Actual machine hours 200,000 Using the above information provided for Underfoot Products, compute the fixed overhead volume variance. A) $5,000 (U) B) $10,000 (U) C) $10,000 (F) D) $15,000 (F)
For the standard normal probability distribution, the area to the left of the mean is
A. -0.5. B. 0.5. C. any value between 0 to 1. D. 1.
A contract is a(n) ________ if the offeror's promise is answered with the offeree's promise of acceptance
A) unilateral contract B) bilateral contract C) executed contract D) executory contract
Carrying value is
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