American Bankers Association Exam CRCM Topic 2 Question 68 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 68
Topic #: 2

[All CRCM Questions]

For a U.S. bank with domestic and foreign locations, which transaction does NOT require an information return to report the amount of interest paid?

AA loan made to James Roberts, a U.S. resident, payable at the bank's New York office, to purchase securities secured by the borrower's home in Mexico

BA loan made to Robert and Louise LeBlanc, who are resident aliens, payable at the bank's New York office, secured by a piece of real property located in Canada

CA loan made to Smith and Withers, a partnership formed for the practice of law, located in the United States, payable at the bank's New York office, guaranteed by Mr. Smith and Mr. Withers, and secured by the law firm's office building

DA loan made by Mrs. West, a U.S. citizen, to purchase a mobile home and the lot on which it will be placed; both the mobile home and lot are located in the United States

Show Suggested Answer

Suggested Answer: D

by Salome at Apr 01, 2023, 05:56 AM

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Lavonda

19 days ago

Hmm, this is a tricky one. I think I'm going to go with option D, since it's the only one that's completely domestic. Gotta love those good old U.S. mobile homes!

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Rebbecca

1 months ago

Haha, I bet the bank teller who has to fill out all those information returns is just dreaming of a world where no one ever takes out a loan!

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Lavina

14 days ago

Yeah, Mrs. West's loan for the mobile home and lot in the U.S. seems like the one that doesn't need an information return.

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Vernice

23 days ago

I think option D does not require an information return to report the amount of interest paid.

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Virgilio

24 days ago

I know right, that would make their job so much easier!

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Sean

1 months ago

Wait, isn't option C about a loan to a partnership located in the U.S.? Wouldn't that be domestic and not require a return?

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Beckie

22 days ago

So, that means it does not require an information return to report the amount of interest paid.

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Kaitlyn

1 months ago

Yes, you are correct. Option C is a domestic loan to a partnership in the U.S.

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Lenny

2 months ago

The question is asking about which transaction doesn't require an information return, so it seems like option D is the correct answer. A and B involve foreign locations, and C involves a partnership, so those would all require reporting.

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