Question
During 2019, Peter rented his vacation home for 90 days and spent 30 days. Gross rental income from the property was $15,000. Peter incurred the
During 2019, Peter rented his vacation home for 90 days and spent 30 days. Gross rental income from the property was $15,000. Peter incurred the following expense:
Mortgage and Real Estate taxes 9000
Utilities 2500
Repairs and Maintenance 1200
Depreciation 4000
Using the IRS method for vacation homes, compute Peter's deductions for the vacation home (round each answer to the nearest whole dollar): 1. Total mortgage interest and real estate taxes allocated to vacation home 2. Total utilities allocated to vacation home 3. Total repairs allocated to vacation home 4. Total depreciation allocated to vacation home 5. What is the net profit on the rental using the IRS method? Using the court method for vacation homes, compute Peter's deduction for the vacation home (round each answer to the nearest whole dollar): 1. Total mortgage interest and real estate taxes allocated to vacation home 2. Total utilities allocated to vacation home 3. Total repairs allocated to vacation home 4. Total depreciation allocated to vacation home 5. What is the new profit on the rental using the Court method?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
For interest and real estate taxes allocation we have two methods Tax Court metho...
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Managerial Decision Modeling With Spreadsheets
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
3rd Edition
136115837, 978-0136115830
