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During the year, Natalie rented out the condo for 75 days, receiving $2,000 of gross income. She personally used the condo for 35 days during
During the year, Natalie rented out the condo for 75 days, receiving $2,000 of gross income. She personally used the condo for 35 days during her vacation. Natalie's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property.
Assume Natalie uses the IRS method of allocating expenses to rental use of the property.
- What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo?
- What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?
- If Natalies basis in the condo at the beginning of the year was $150,000, what is her basis in the condo at the end of the year?
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