Anwar owns a rental home and is involved in maintaining it and approving renters. During the...
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Anwar owns a rental home and is involved in maintaining it and approving renters. During the year he has a net loss of $11,650 from renting the home. His other sources of income during the year were a salary of $110,000 and $27,000 of long-term capital gains. How much of Anwar's $11,650 rental loss can he deduct currently if he has no sources of passive income? Deductible rental loss Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: $ 3,100 Insurance Advertising expense Mortgage interest Property taxes Repairs and maintenance Utilities 665 5,600 1,950 1,700 2,000 11,650 Depreciation During the year, Natalie rented out the condo for 86 days, receiving $20,500 of gross income. She personally used the condo for 45 days during her vacation. Assume there are 365 days in the year. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo? For AGI deductions b. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo? Itemized deductions c. If Natalie's basis in the condo at the beginning of the year was $241,000, what is her basis in the condo at the end of the year? Basis d. Assume that gross rental revenue was $4,100 (rather than $20,500). What amount of for AGI deductions may Natalie deduct in the current year related to the condo? For AGI deductions Anwar owns a rental home and is involved in maintaining it and approving renters. During the year he has a net loss of $11,650 from renting the home. His other sources of income during the year were a salary of $110,000 and $27,000 of long-term capital gains. How much of Anwar's $11,650 rental loss can he deduct currently if he has no sources of passive income? Deductible rental loss Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: $ 3,100 Insurance Advertising expense Mortgage interest Property taxes Repairs and maintenance Utilities 665 5,600 1,950 1,700 2,000 11,650 Depreciation During the year, Natalie rented out the condo for 86 days, receiving $20,500 of gross income. She personally used the condo for 45 days during her vacation. Assume there are 365 days in the year. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo? For AGI deductions b. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo? Itemized deductions c. If Natalie's basis in the condo at the beginning of the year was $241,000, what is her basis in the condo at the end of the year? Basis d. Assume that gross rental revenue was $4,100 (rather than $20,500). What amount of for AGI deductions may Natalie deduct in the current year related to the condo? For AGI deductions
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Answer Part 1 Maximum Deduction before Phase Out 25000 as per IRS Phase Out start from MAGI 100000 P... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0071051606
8th Canadian Edition
Authors: Stephen A. Ross, Randolph W. Westerfield
Posted Date:
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