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business and 60% for personal use. Determine his cost recovery
deduction for the car for 2010.
12. (TCO 10) Cory incurred and paid the following expenses:
Tax return preparation fee
$600
Moving expenses
$2,000
Investment expenses
$500
Expenses associated with rental property
$1,500
Interest expense associated with loan to finance tax-exempt bonds
$400
13. (TCO 10) Sarah incurred the following expenses for her
dependent son during the current year:
Payment of principal on son's automobile loan
$5,000
Interest on above loan
$2,000
Payment of son's property taxes
$1,200
Payment of principal on son's personal residence loan
$1,500
Payment of interest on son's personal residence loan
$8,000
How much may Sarah deduct in computing her itemized deductions?
14. (TCO 10) Danielle owns a vacation cottage. During the current
year, she rented it for $1,500 for 48 days, and lived in it for 12 days.
How would any expenses be accounted for?
15. (TCO 3) During the year, Rick had the following insured personal
casualty losses (arising from one casualty). Rick also had $18,000
AGI for the year.
Asset
Adjusted
Basis
Fair Market
Value (Before)