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Please compare and contrast acquisition indebtedness and hom

1.Please compare and contrast acquisition indebtedness and home-equity indebtedness.
2. Why might it be good advice from a tax perspective to think hard before deciding to quickly pay down mortgage debt?
3. Are employees or self-employed taxpayers more likely to qualify for the home office deduction? Explain

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1. Please compare and contrast acquisition indebtedness and home-equity indebtedness.

-- Acquisition indebtedness is debt that is acquired to substantially improve the main or secondary home of the taxpayer, where the home secures the debt. If the taxpayer fails to pay the debt, it gives the securer of the debt the right to take the home, as repayment of the debt. In contrast, home equity indebtedness is a debt that is also secured by the primary or secondary home, above the amount of the acquisition indebtedness. The amount of home equity indebtedness is the greater amount of 1) the amount that is ...

Solution Summary

Please compare and contrast acquisition indebtedness and home-equity indebtedness.
2. Why might it be good advice from a tax perspective to think hard before deciding to quickly pay down mortgage debt?
3. Are employees or self-employed taxpayers more likely to qualify for the home office deduction? Explain

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