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Brianna owns a cottage at the beach. She and her family use the property for 30 days during the summer season and rent it to
Brianna owns a cottage at the beach. She and her family use the property for 30 days during the summer season and rent it to unrelated parties for 60 days. The rental receipts amount to $8,000. Total costs of operating the property are as follows:
Mortgage interest | $13,000 |
Property taxes | 5,000 |
Utilities | 2,000 |
Insurance | 1,000 |
Maintenance | 600 |
In addition, potential depreciation expense is $9,000.
How much of the expenses can Brianna deduct (and specify on which schedule they are included)?
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