Required information The folowing information applies to the questions displayed

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Required information The folowing information applies to the questions displayed below.] Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland. He resided in the home for the remainder of the year, Rental income from the property was $5,600. Expenses associated with use of the home for the entire year were as follows: t 2 Real property taxes Mortgage interest Repairs Insurance Utilities Depreciation $ 2,750 11, 375 1, 175 1,330 4, 320 11, 200 015 ed a. What effect does the rental have on Dillon's AGI? Effect of rental activity on Dillon's AGI

Explanation / Answer

a. A taxpayer is not required to include gross receipt in rental income because she lives in a house for minimum 15 days and rent out the house for less than 14 days. Hence, Rental income will be exclude from taxable income and has not effect on AGI

b. Itemizable Rela Property Tax= $2750

Itemizable Mortgage Interest=$11375

a. A taxpayer is not required to include gross receipt in rental income because she lives in a house for minimum 15 days and rent out the house for less than 14 days. Hence, Rental income will be exclude from taxable income and has not effect on AGI

b. Itemizable Rela Property Tax= $2750

Itemizable Mortgage Interest=$11375

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