a) What is Sidd's Taxable Income BEFORE Depreciation?

A. -$3525

B. -$6,125

C. $36,000

D. -$7975

b) Calculate Sidd's available depreciation for the building and any appliances/equipment he owns. No bonus depreciation or Sec 179.

	A.	Building Year 1: $14,545 ; Equipment Year 1: $1000
	B.	Building Year 1: $13,940; Equipment Year 1: $500
	C.	Building Year 1: $13,940; Equipment Year 1: $1000
	D.	D.Building Year 1: $17,425; Equipment Year 1: $1000 How would the answer in B change if this were a commercial rental property instead (non-residential)? (Ignore the equipment depreciation for this question - just provide the new depreciation for the building only) A. Total Depreciation now = $10,844 B. Total Depreciation now = $9,844 C. Total Depreciation now = $10,256 D. Total Depreciation now = $11256

idd Taxpayer purchased a rental property in San Diego, CA on 1/1/2011. He placed the property in service at this same time. He needs your help organizing is numbers for his tax returns this year he following details his transactions while operating this rental property Purchase Date: 1-1-11 Cost: Loan Cash Down payment Assume 20% of the cost of the property is allocable to Land cost $500,000 $400,000 100,000 36,000 Annual Rents Collected (Includes $2500 of prepaid rents received for 2012 at the end of 2011) Vacancy Expected Deposits collected (Must return to tenant if all conditions are met on departure) 5% 12,000 Annual Cash Out Mortgage Interest Principal Insurance Repairs - Minor Flood Repairs Maintenance Property Tax Advertising 28,000 2,600 2,500 750 4,500 1,200 5,500 75 Credit reports Bank fees Accounting Fees Appliances for Units 180 120 1,200 5,000 Other Information Uncollected rents Gift from Grandmother Insurance Proceeds from Flood 1,850 10,000 4,500