Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs th

Question

Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:


Insurance $1,180
Advertising expense 665
Mortgage interest 3,300
Property taxes 1,270
Repairs & maintenance 950
Utilities 1,170
Depreciation 13,200

During the year, Natalie rented out the condo for 93 days, receiving $29,750 of gross income. She personally used the condo for 45 days during her vacation.

Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)


a.
What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?

Itemized deductions $

Explanation / Answer

Itemized Deductions = Sch A on Form 1040 Since she only live for 45 days and rented 93 days, we need to allocate the personal use with the total days = 45 + 93 = 138 days. 45/138 = .3261 Prop Taxes = 1,270 x .3261 = $414 Mortgage Interest = 3,300 X .3261 = 1,076 Total: $1,490 These are the only items that will appear on Sch A.

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