a. 7. Rental Real Estate, Active Participation (Obj. 4) In 2009, Tyler Tomey (548-55-9234) paid $135,000 for a condominium that he was as rental property. In 2016, he spent $37,000 furnishing the condo. He uses tegli (accelerated) MACRS to depreciate the furnishings, In 2016, Tyler deducted 50% of the cost of the furnishings as bonus depreciation. The half-year convention applies the furnishings. During 2020, Tyler received $15,000 in rental income and paid he following expenses: Association dues $2,800 Insurance Mortgage interest 7,460 Real estate taxes 1,400 Repairs 760 Utilities 360 350 The property is located at 5505 West End Road, #5, Farmington, IN 46883. Tyler actively participates in the rental activity. His AGI before considering the above income and expenses is $141,400. He depreciates the condominium using MACRS. Prepare Schedule E and Form 8582 for Tyler Tomey