11. A taxpayer rents out a vacation home for 60 days and uses it for personal use for 30 days.

Gross rental income was $8,000.

The following expenses were incurred for the year:

Mortgage interest $3,600

Real estate taxes 1,200

Utilities 600

Maintenance 720

Depreciation 4,800

Net rent for the vacation home is:

a. $0.

b. $720.

c. $6,180.

d. $(880).

e. None of the above.

12. Which of the following expenditures incurred on an apartment building is not treated as an improvement?

a. Replacing broken windows

b. Installation of a new roof

c. Paving a driveway

d. Replacing the kitchen cabinets

e. All of the above are treated as improvements

13. Which of the following statements does not apply to a vacation home that is rented out for less than 15 days during the year?

a. None of the rental income is reported

b. Expenses must be divided between personal use and rental use

c. Real estate taxes are treated as an itemized deduction

d. Casualty losses are only deductible if the taxpayer itemizes deductions

e. All of the above apply

14. A single taxpayer has $130,000 of AGI before considering a $40,000 loss from rental real estate activities in which he actively participates. What amount of loss can the taxpayer deduct?

a. $0

b. $10,000

c. $15,000

d. $30,000

e. None of the above $25,000 - [($130,000 - ? ) x 50%] = ?.

15. Which of the following accommodations must be present before property can be considered a dwelling unit?

a. A kitchen

b. Sleeping quarters

c. Toilet facilities

d. All of the above must be present in order to provide the basic living accommodations

e. None of the above must be present in order to provide the basic living accommodations

16. A vacation home is rented out for 10 days during the year and used personally by the owner for 20 days during the year. What percentage of real estate taxes should be deducted on Schedule A?

a. 0%

b. 33%

c. 67%

d. 100%

e. None of the above