Question
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 2,600 Mortgage
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo:
Insurance | $ 2,600 |
---|---|
Mortgage interest | 7,400 |
Property taxes | 2,480 |
Repairs & maintenance | 1,700 |
Utilities | 3,700 |
Depreciation | 16,000 |
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 $22,400 in gross rental receipts, answer the following questions:
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. d. Assume that Alexas AGI from other sources is $200,000. This consists of $141,000 salary, $12,400 of dividends, $28,600 of long-term capital gain, and net rental income from another rental property in the amount of $18,000. What effect does the Cocoa Beach condo rental activity have on Alexas AGI? PLEASE ANWSER ALL
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