During the year (not a leap year), Anna rented her vacation home for 87 days, us
ID: 2541870 • Letter: D
Question
During the year (not a leap year), Anna rented her vacation home for 87 days, used it personally for 13 days, and left it vacant for 265 days. She had the following income and expenses:
If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Assume 365 days in a year.
a. Is her vacation home classified as rental property?
b. Compute the following regarding the rental use of the property:
c. Anna has a of $ this year.
d. What amount of the real estate taxes can Anna deduct as an itemized deduction?
$
e. What amount of the mortgage interest can Anna deduct as an itemized deduction?
$
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Rent income $7,000 Expenses Real estate taxes 2,500 Interest on mortgage 9,000 Utilities 2,400 Repairs 1,000 Roof replacement (a capital expenditure) 12,000 Depreciation 7,500Explanation / Answer
Answer:-
a. Is her vacation home classified as rental property?
Ans:- Yes
b. Compute the following regarding the rental use of the property
c. Anna has a of $ this year.
Answer:- Anna has Net rental loss of $12,488 this year
($7,000-$19,488)
d. What amount of the real estate taxes can Anna deduct as an itemized deduction?
Answer:- $325
e. What amount of the mortgage interest can Anna deduct as an itemized deduction?
Answer:- $ 0.
Gross Income $ 7000 Total Expenses $19,488Related Questions
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