Michael closed on his new home December 31,2016 instead of January 1,2017.As a result,Michael:
A)accelerated tax deductions in 2016.
B)accelerated tax deductions in 2017.
C)increased his adjusted gross income in 2016.
D)decreased his adjusted gross income in 2017.
E)decreased tax exemptions in 2016.

Question

Quizplus · Accepted Answer

By closing on his home in 2016 instead of 2017, Michael was able to accelerate his tax deductions for that year. This is because he was able to include any mortgage interest and property taxes paid in 2016 when he filed his taxes for that year. If he had waited until 2017, he would have had to wait until he filed his 2017 taxes to claim those deductions.

Michael Closed on His New Home December 31,2016 Instead of January