Mel and Helen own a beachfront home in Myrtle Beach, S.C. During the year, they rented the

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Mel and Helen own a beachfront home in Myrtle Beach, S.C. During the year, they rented the house for 5 weeks (35 days) at $800 per week and used the house for personal purposes 65 days. The costs of maintaining the house for the year were:
Mortgage interest .... $5,500
Real property taxes ... 4,500
Insurance ......... 650
Utilities ......... 1,000
Repairs and maintenance . 480
Depreciation (unallocated) . 3,500
a. What is the proper tax treatment of this information on their tax return?
b. What is the proper tax treatment if Helen and Mel rented the house for only 2 weeks (14 days)?

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Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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