Question
Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland. He resided in the home for the remainder
Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland. He resided in the home for the remainder of the year. Rental income from the property was $5,900. Expenses associated with use of the home for the entire year were as follows:
| Real property taxes | $ 2,900 |
|---|---|
| Mortgage interest | 11,750 |
| Repairs | 1,250 |
| Insurance | 1,420 |
| Utilities | 4,680 |
| Depreciation | 11,800 |
a. What effect does the rental have on Dillons AGI? Increases, Decreases, Remains the same
b. What effect does the rental have on Dillons itemized deductions (assuming he itemizes deductions before considering deductions associated with the home)?
Itemized Real Property Taxes =
Itemized Mortgage Interest =
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Managerial Accounting, 1, (6 Months)
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th Edition
1337270814, 9781337270816
