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Careen owns a condominium near Hershey, PA that she rents out part of the year. This year, she incurs the following expenses in connection
Careen owns a condominium near Hershey, PA that she rents out part of the year. This year, she incurs the following expenses in connection with her rental condo: Mortgage Interest Property Taxes Insurance Repairs and maintenance Utilities Depreciation During the year, Careen rented the condo for 189 days, receiving $32,400 of gross income. She personally used the condo for 63 days. Assuming Careen uses the court method of allocating expenses to rental use of the property. She files single and in addition to expenses listed above, she paid the following amounts: home mortgage interest on her personal residence property taxes on her personal residence state income taxes charitable contributions Depreciation Deducted Net Rental Income (Loss) Total for AGI Deductions Total Itemized (from AGI) Deductions 8,030 7,300 5,292 3,528 6,552 18,648 7,900 4,300 5,600 4,400 Remember that for itemized deductions (from AGI) the deduction for state & local taxes is limited to $10,000. Calculate her net rental income (loss) and her itemized deductions. In addition to your calculations include the following table in your Excel worksheet summarizing how much depreciation she is allowed to deduct, her net rental income (loss), her total amount of "for AGI" deductions, and her total amount of itemized deductions (from AGI).
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Answer To calculate Careens net rental income loss and her itemized deductions we can follow these steps 1 Calculate the total expenses for the rental ...Get Instant Access to Expert-Tailored Solutions
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