Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the
ID: 2794906 • Letter: A
Question
Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:
During the year, Alexa rented out the condo for 134 days. Alexa’s AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income.
Assume that in addition to renting the condo for 134 days, Alexa uses the condo for eight days of personal use. Also assume that Alexa receives $49,750 of gross rental receipts. Answer the following questions
b. What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days.
Insurance $ 3,350 Mortgage interest 6,650 Property taxes 2,800 Repairs & maintenance 860 Utilities 2,600 Depreciation 23,800 a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days. Gross rental income 49,750 Expenses Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation 3,350 6,650 2,800 860 2,600 23,800 Total expenses Balance-net rental income Total for AGI deductions 40,060 89,810Explanation / Answer
a]
Note:- Total days = 134 rental days + 8 personal use days
= 142 days
b] Total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year = $37803.09
gross rental receipts $49,750 Expenses: Insurance 3,350 * [134 days /142 days] 3161.27 Mortgage interest 6,650* [134 days /142 days] 6275.35 Property taxes 2,800 * [134 days /142 days] 2642.25 Repairs & maintenance 860 * [134 days /142 days] 811.55 Utilities 2,600 * [134 days /142 days] 2453.52 Depreciation 23,800 * [134 days /142 days] 22459.15 Total expenses 37803.09 Balance - net rental income $11946.91 Total " for AGI " deductions $37803.09Related Questions
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