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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 Mortgage interest Property
Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 1,800 7,400 4,350 730 2,400 18,600 During the year, Alexa rented out the condo for 127 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. Assume that in addition to renting the condo for 127 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $50,250 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo. Answer the following questions: Note that the home is considered to be a nonresidence with rental use. 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. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Gross rental income 50,250 Expenses: Insurance $ 1,693 6,961 4,092 Mortgage interest Property taxes Repairs & maintenance Utilities 687 2,258 17,498 Depreciation Total expenses 33,189 17,061 Balancenet rental income $ Total "for AGI deductions 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. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) From AGI deductions
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