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During 2019, Kim incurs the following expenses with respect to her beachfront condominium in Hawaii: (Click the icon to view the data.) During 2019, Kim
During 2019, Kim incurs the following expenses with respect to her beachfront condominium in Hawaii: (Click the icon to view the data.) During 2019, Kim used the condominium 20 days for vacation. She rented it out for a total of 60 days, generating a total gross income of $9, 100. Read the requirements. Requirement a. What are the total amounts of deductions for and from AGI that Kim may take during 2019 with respect to the condominium using the IRS allocation method? (For purposes of this problem, use the allocation formula set forth by Sec. 280A. Enter "O for zero amounts.) Item For AGI From AGI A 125 Insurance More Info Repairs and maintenance 175 Interest on mortgage 750 Expense Item A mount Property taxes Utilities Insurance $ 500 Depreciation 8800 Repairs and maintenance 700 Interest on mortgage 3,000 Total deductions Property taxes 1,000 Requirement b. What is the effect on the basis of the condominium? Utilities 800 The basis of the condominium is decreased by $4,600 Depreciation 8,000 800 Done
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