Deductions Flashcards
0
Q
What are the four type of taxes?
A
Sales - Sales tax typically goes into the general fund of a state
Excise - Targeted tax to pay for specific program (e.g. excise tax on electronics to pay for their disposal)
Income - State and federal
Property (real and personal)
1
Q
What condition must exist for a tax payer to take advantage of a deduction like home mortgage interest?
A
They itemize deductions and those deductions together most exceed the standard deduction available them. For the mortgage deduction, those with middle to upper-middle class incomes, and the wealthy, generally benefit. Those is lower economic classes generally can’t, and real estate agents often fail to mention this to their lower income buyers.
