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Adelene, who lives in a winter resort area, rented her personal residence for 14 days while she was visiting Brussels. Rent income was $5,000. Related
Adelene, who lives in a winter resort area, rented her personal residence for 14 days while she was visiting Brussels. Rent income was $5,000. Related expenses for the year were as follows: Real property taxes Mortgage interest Utilities Insurance Repairs Depreciation $3,800 7,500 3,700 2,500 2,100 15,000 If an answer is zero, enter "0". a. Determine how much of the rental income is reportable b. Determine whether the expenses are deductible. Select "Yes" if deductible otherwise select "No". Depreciation Real property taxes Repairs Utilities Mortgage interest Insurance No Yes No No Yes No Determine the effect the rental activity has on Adelene's AGI. $ c. 11,300X Malaika makes quilts in her spare time. She earned $8,200 selling the quilts during the year and incurred expenses as follows: Supplies Depreciation on quilting machine Printing flyers for advertising Postage and shipping to deliver quilts Total $6,500 2,100 125 500 $9,225 Her AGI, without considering the effect of the sales of the quilts, is $65,000. If an amount is zero, enter "O". Calculate the following if the activity is: A hobby: AGI 73,200 Deductible expenses A business: AGI 6,736 X 63,975 Deductible expenses 9,225
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