Question
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 2,250 Mortgage
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo:
Insurance | $ 2,250 |
---|---|
Mortgage interest | 6,875 |
Property taxes | 2,200 |
Repairs & maintenance | 1,525 |
Utilities | 3,000 |
Depreciation | 15,125 |
During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes during the year. Alexas AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income.
Assuming Alexa receives $21,000 in gross rental receipts, answer the following questions: (Leave no answer blank. Enter zero if applicable.)
a. What effect does the rental activity have on her AGI for the year?
b. Assuming that Alexas AGI from other sources is $90,000, what effect does the rental activity have on Alexas AGI? Alexa makes all decisions with respect to the property.
c. Assuming that Alexas AGI from other sources is $120,000, what effect does the rental activity have on Alexas AGI? Alexa makes all decisions with respect to the property.
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