Cathy owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

Insurance	$ 1,200
Advertising Expense	600
Mortgage Interest	3,200
Property Taxes	1,100
Repairs and Maintenance	800
Utilities	750
Depreciation	6,900

During the year, Cathy rented out the condo for 80 days, receiving $12,000 of gross income. She personally used the condo for 20 days during her vacation.

Assume Cathy uses the IRS method of allocating expenses to rental use of the property. (Include your calculations in your answer; if your answer ties to your tax forms then it will be marked correct).

A. What is the total amount of for AGI (rental) deductions Cathy may deduct in the current year related to the condo?

B. What is the total amount of itemized deductions Cathy may deduct in the current year related to the condo?

C. If Cathys basis in the condo at the beginning of the year was $142,000, what is her basis in the condo at the end of the year?

D. Assume that gross rental revenue was $2,000 (rather than $10,000). What amount of for AGI deductions may Cathy deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with the condo)?

E. Returning to the original facts, except depreciation is now 9,500. What is the total amount of for AGI deductions Cathy may claim in the current year related to the condo? What would her basis in the condo be at year end?