Question
Briana owns a second home that he rents to others. During the year, she used the second home for 50 days for personal use and
Briana owns a second home that he rents to others. During the year, she used the second home for 50 days for personal use and for 100 days for rental use. She collected $20,000 of rental receipts during the year. Based on the number of rental and personal days, she allocated $7,000 of interest expense and property taxes, $10,000 of other expenses, and $4,000 of depreciation expense to the rental use. What is her net rental income this year?
$0 net income. $1,000 depreciation expense carried forward to next year
| $0 net income. $1,000 of interest expense and property taxes carried over to next year |
| $0 net income. $1,000 of other expense carried over to next year |
| ($1,000) net loss. $0 expenses carried over to next year |
| None of the above net income or loss carry-over is correct |
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