John is interested in tax planning and saving for his children’s education. He needs some further...

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Accounting

John is interested in tax planning and saving for his children’seducation. He needs some further information on the topicsbelow:
He has several long- and short-term investments that he wouldlike to sell to put his children through college, and he does notknow the tax consequences associated with them if he sells.
He is considering taking a second mortgage or home equity loanon the house in order to increase funds available for hischildren's tuition. He would like to understand the deductibilityof the interest and any limitations that exist.
He is considering contributing to his IRA or converting to aRoth, but maybe he can wait a couple years before doing this as hebelieves there are severe tax consequences to this. He would alsolike to know about the income limitations to convert from an IRA toa Roth.
He asks about any credits that he could get for paying for hischildren's tuition, room, and housing.
John is married and has a combined adjusted gross income of$135,000; he currently has a mortgage of $500,000.
discuss this topic Interest deduction and explain the taxconsequences associated with his or her topic and how it relates toJohn’s situation.

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4.5 Ratings (625 Votes)

John is having Long term and short term investments If He sells Lon term Inestments then Long Term Capital Gain shall arises and he has to pay for it If he sells short term investments the Short term Capital Gain arises and He has to pay for it For Mortgage Property John can claim deduction interest paid on Housing Mortgage Loan because The IRS See Answer

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