Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs th
ID: 2582674 • Letter: N
Question
Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:
Insurance $1,000
Advertising expense 500
Mortgage interest 3,400
Property taxes 1,500
Repairs & maintenance 650
Utilities 950
Depreciation 8,500
During the year, Natalie rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo?
Explanation / Answer
Therefore the total amount of for AGI (rental ) deductions is $ 9075.01
PARTICULARS AMOUNT ($) Gross Rental inome of natalie 10,000.00 LESS : Expenses Tier - 1 (1506.85)- Adverstising Expenses $ 500
- Mortage Interest $ 3400 X 75 /365 days = $ 698.63
- Property Taxes $ 1500 X 75/365 days = $ 308.22
- Insurance $ 1000 X 75/ 110 days = $ 681.81
- Repairs & Maintainence $ 650 X 75/110 days = $ 443.18
- Utilities $ 950 X 75/110 days = $ 647.72
- Depreciation $ 8500 X 75/110 = $ 5795.45
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