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Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance $ 2,050 Mortgage

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

Insurance $ 2,050
Mortgage interest 7,450
Property taxes 4,200
Repairs & maintenance 650
Utilities 4,650
Depreciation 23,700

During the year, Alexa rented out the condo for 137 days. Alexas AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 137 days, Alexa uses the condo for eight days of personal use. Also assume that Alexa receives $47,750 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo. Answer the following questions: (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

Note that the home is considered to be a nonresidence with rental use.

image text in transcribed

b. What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days.

From AGI deductions

a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days Answer is not complete. Gross rental income 47,750 Expenses $ (2,050) (7,450) (4,200) (650) (4,650) (23,700) Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation Total expenses Balanc-net rental income Total "for AGI" deductions (42,700) $5,050

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