ACCT 553 STUDY Start With a Dream /acct553study.com ACCT 553 STUDY Start With a Dream /acct553study.c | Page 13

Chapter 8
3. Macy had a lot of medical expenses this year that were not covered
by her insurance (either due to a deductible, co-insurance, or co-pay).
Her un-reimbursed qualifying medical expenses total $8,356 and her
AGI for 2013 is $45,000. Assuming she will itemize on her 2013 tax
return, how much of her medical expenses will she be able to deduct?
(5 pts)
4. Heather & Terry have a mortgage on their primary residence of
$750,000 and a mortgage on their vacation home of $410,000. In
2013, they incurred $46,400 of mortgage interest expense. How much,
if any, of that interest is deductible on Schedule A? (5 pts)
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ACCT 553 Week 4 Assignment You Decide
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Jane Smith Case
How is the $300,000 treated for purposes of federal tax income?
Jane Smith Tax Issues:
(a) What are the different tax consequences between paying down the
mortgage debt and assuming a new mortgage debt for federal income
tax purposes?
(b) Should John and Jane file separate or joint tax returns?
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