Question
Alexa owns a condominium near cocoa Beach in Florida. This year, she incurred the following expenses in connection with her condo : Insurance. 2,750 Mortgage
Alexa owns a condominium near cocoa Beach in Florida. This year, she incurred the following expenses in connection with her condo :
Insurance. 2,750 Mortgage interest. 7,625 Property taxes. 2,600 Repairs & maintenance. 1,775 Utilities. 4,000 Depreciation. 16,375
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. Alexa AGI from all sources other than the rental property is 200,000. Unless otherwise specified. Alxa has no source of passive income. Assuming Alexa received 23,000 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 AGI from other sources is 90,000, what effect does the rental does the rental activity have on Alexa AGI? Alexa makes all decisions with respect to the property.
(c) Assuming that Alexa AGI from other sources is 120,000. What effect does the rental activity have on Alexa AGI. Alexa makes all decisions with respect to the property.
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