Question
Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance $ 2,200 Mortgage
Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:
Insurance | $ | 2,200 |
Mortgage interest | 11,050 | |
Property taxes | 3,200 | |
Repairs & maintenance | 1,330 | |
Utilities | 3,400 | |
Depreciation | 21,100 | |
During the year, Alexa rented out the condo for 145 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 145 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $42,000 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo and that her itemized deduction for nonhome business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the following questions:
Note that the home is considered to be a nonresidence with rental use.
. 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 $42,000
Expenses:Insurance$2,085
Mortgage interest 10,472
Property taxes 3,033
Repairs & maintenance1,260
Utilities 3,222
Depreciation 19,996
Total expenses 40,068
Balancenet rental income $1,931
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 answer to the nearest whole dollar amount.)
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