Question
Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo Insurance $2,950 Mortage interest
Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo
Insurance $2,950
Mortage interest $7,925
Property Taxes $2.760
Repairs and Maintenance $1,875
Utilites $4,400
Depreciation $16,785
During this year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes during the year. Alexa's 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 $23,800 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 Alexa's AGI from other sources is $90,000. what effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with repsect to the property.
C) Assuming that Alexa's AGI from other sources is $120,000. What efect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property.
D) Assume that Alexa's AGI from other sources is $200,000. This consists of $135,750 salary, $13,800 of dividends, $30,700 of long term capital gain, and net rental income from another rental property in the amount of $19,750. What effect does the Cocoa Beach condo rental activity have on Alexa's AGI?
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