On July 1 of the Current Year,marcia Purchases a New
On July 1 of the current year,Marcia purchases a new home and borrows $320,000.Marcia is required to pay two points on the loan.The loan is secured by the residence and the charging of points is an established business practice in the area.The term of the loan is 20 years,beginning on July 1 of the current year.How much,if any,of the points may Marcia deduct in the current year?
Which of the following is not required for an accrual method taxpayer to currently deduct the cost of services received?
A)The liability must be paid.
B)The existence of a liability must be established.
C)The amount of the liability is determined with reasonable accuracy.
D)The services must actually be provided.
Which of the following statements is false?
A)A tax deduction is allowed to a taxpayer for estimated warranty expense.
B)A tax deduction is allowed in association with a warranty only in the year in which warranty work is performed.
C)A tax deduction is allowed for a contested amount if the amount is paid prior to final settlement.
D)No tax deduction is allowed to an accrual basis taxpayer for the amount of a down payment for a non-recurring expense when the work is to be performed in a subsequent period.
Under the accrual method,recurring liabilities may be deducted currently and paid in the next period if all of the following are present except for
A)the all-events test is met.
B)the expense is recurring.
C)the expense is material.
D)economic performance occurs within the shorter of 8 1/2 months after the close of the year or a reasonable period after the close of the year.