Question
33) Which of the following expense items is(are) deductible as rental expense for a rental property? A) Travel related to the property B) Management fees
33) Which of the following expense items is(are) deductible as rental expense for a rental property?
A) Travel related to the property
B) Management fees
C) Repairs and maintenance
D) All are deductible expenses
34) May owns a four-plex in Garden Grove, CA. She rents out 3 units and lives in the fourth. Her income and expenses for the entire four-plex are as follows: mortgage interest $8,200, property taxes $9,000, insurance $3,000, utilities $2,000, repairs and maintenance $1,000, depreciation on the entire complex of $5,000, and rental income of $25,000. What amount of net rental income or loss should May report on her current tax return?
A) $3,200 net loss
B) $3,850 net income
C) $21,150 net loss
D) $25,000 net income
35) A property that has been rented for 120 days and used for personal use for 13 days should be categorized as:
A) Primarily rental
B) Primarily personal
C) Personal/rental
D) None of these
36) Jane and Don own a ski chalet in Lake Tahoe, NV and rented it for 12 days for $8,000. The rest of the year, the chalet was used by them and their friends and family. What is the proper tax treatment of the $8,000?
A) Should be reported on Schedule E
B) None of the rental income is included in gross income
C) The amount should be reported on Schedule C
D) The amount should be reported as other income on Form 1040
37) Lupe rented her personal residence for 13 days to summer vacationers for $3,800. She lived in the home for the rest of the year. She has AGI of $95,000 excluding the rental income. Related expenses for Lupe's personal residence for the year include these:
Real property taxes
$
4,500
Utilities
5,000
Insurance
900
Mortgage interest
7,000
Repairs
800
Depreciation
1,500
What is Lupe's AGI after taking into consideration the rental income and related expenses?
A) $95,000
B) $98,098
C) $98,800
D) $115,000
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