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1RS Expands Rules on Deductible Home-Equity Debt
1. Provide an overview of the article and keep topics
2. Explain the purpose of the article.
3. If you agree with the article, how can Revenue Ruling 2010-25 be beneficial? If you disagree with the article, what are the implications for implementing Revenue Ruling 2010-25.
4. Explain the major conclusions of the article.
5. What is your opinion on these conclusions?
Deductible Home-Equity Debt:
1. Provide an overview of the article and keep topics:
According to the ruling of the IRS, an amount of 1.1million dollars may be deducted from debt while securing the purchase of a taxpayer's principal residence. Some interests such as personal interest are nondeductible while others such as home equity indebtedness are deductible. The limit for indebtedness of home equity for a married woman should not exceed 100,000 dollars. It is also evident that exceeding one million dollars when it comes to acquisition indebtedness is not possible. The maximum amount that can be attained is five hundred thousand dollars for an individual who is married the amount is usually filed separately. In the cases where indebtedness exceeds one million dollars, the indebtedness is no longer referred to as acquisition indebtedness. Home equity indebtedness on the other hand cannot exceed one hundred thousand and 50 thousand dollars for a married individual filing separately. Home equity indebtedness on the other hand is secured by the principal of a tax payer or a ...
The solution expands rules on deductible home-equity debts.