Assume Natalie uses the IRS method of allocating expenses to rental use of the property. a. What
Question:
Assume Natalie uses the IRS method of allocating expenses to rental use of the property.
a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo?
b. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?
c. If Natalie's basis in the condo at the beginning of the year was $150,000, what is her basis in the condo at the end of the year?
d. Assume that gross rental revenue was $2,000 (rather than $10,000), what amount of for AGI deductions may Natalie deduct in the current year related to the condo?
e. Using the original facts, complete Natalie's Form 1040, Schedule E for this property. Also, partially complete Natalie's 1040, Schedule A to include her from AGI deductions related to the condo.
Step by Step Answer:
a 10000 calculated as follows Gross rental income 10000 Tier 1 expenses Advertising expense 500 Mortgage interest 75110 35002386 Property taxes 75110 900614 Less total Tier 1 expenses 3500 Balance 650...View the full answer
Taxation Of Individuals 2017
ISBN: 9781259548666
8th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
