During Angela sustains serious injuries from a snowskiing accident. She incurs the following expenses:
Item Amount
Doctor bills $
Hospital bills
Legal fees in suit against ski resort
Angela is single and has no dependents. For the year, her salary is $ She pays $
in medical and dental insurance premiums, which is withheld from her paycheck on an
aftertax basis, $ in mortgage interest on her home, and $ in interest on her car
loan. Her health insurance provider reimburses her for $ of the medical expenses.
What is her taxable income?
During the current year, Tina purchases a beachfront condominium for $ paying $ down and taking out a $ mortgage, secured by the property. At the time of the purchase, the outstanding mortgage on her principal residence is $ This debt is secured by the residence. The FMV of the principal residence is $ She purchased the principal residence in What is the amount of qualified indebtedness on which Tina may deduct the interest payments?
