Income Taxation Research Project Paper Example | Topics and Well Written Essays - 500 words

Income Taxation Project - Research Paper Example He is thinking on the various aspects and benefits of loan like tax implications, deductions, and alternative minimum tax (AMT) etc. He wants to be wise in taking the loan, so that he doesn’t miss any of the tax benefits. He is also seeking further tax advice on this and wants to know if the tax deductions for house owners will cause him to pay more AMT than which he normally pays because of his high income. 2. Mr. Block can avail tax benefits on as per the regulations specified in IRS Publication 936 Main Content. This includes mortgage interest, mortgage interest premiums etc. He can also detect the payments made during purchase such as Real Estate Taxes (IRS Publication 530, Main content). If he prepays the interest for mortgage that interest can also be deducted as mortgage interest as per Topic 504, Home Mortgage Points. 4. The amount of loan Mr. Block requires is greater than $100,000. In that case, he will not be able to deduct all the interest he pays towards the loan. This is present in Topic 504, Home Mortgage points. The loan period also plays a major role in the deductions he can avail. He can avail benefits if the loan period is not greater than 30 years. Also, Mr. Block can reduce the interest only if the debt is a secured debt. Further details can be obtained from IRS Publication 936 Main Content. 5. Mr. Block should also be concerned about the various Fraud practices and schemes such as property flipping, more than one settlement statement for the same house etc. as mentioned in the IRS Mortgage and Real estate Fraud section. 1. Does his earlier investment or salary have any impact on the maximum loan amount that he can get? What will be the case if he does not have a steady income and investment? Will he be able to buy the house? Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home).