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Facts: During the year (not a leap year), Anna Gastever (123-45-6789) rented her second home for 30 days, used it personally for 20 days,
Facts: During the year (not a leap year), Anna Gastever (123-45-6789) rented her second home for 30 days, used it personally for 20 days, and left it vacant for 315 days. She had the following income and expenses related to the second home: Rent Income $7,000 Real Estate taxes 2,500 Interest on Mortgage 9,000 Utilities 2,400 Repairs 1,000 Roof Replacement (capital expenditure) 12,000 Depreciation (full year) 7,500 In addition to the expenses related to the second home, Anna had the following deductions: Real estate taxes on personal home Interest on personal home mortgage State income tax paid State sales tax Cash charitable contributions $2,500 10,000 7,500 750 1,000 Anna's second home is a single-family residence, and it is located at 123 Lake Drive Lake Geneva, WI 53147. If there are any options for calculations, Anna would like you to choose the option that maximizes her overall deductions. If any expenses should be factored into depreciation, assume that amount is included in the $7,500. All mortgage interest was reported on a Form 1098. Assignment: Please download the 2021 Schedule E and Schedule A from the IRS website and complete the required forms for Anna. In addition to the forms, please include an Excel spreadsheet showing your work for your calculations and a supplemental calculation if any line item on a Form includes more than one number (ie two mortgage interests should be separately listed and summed). As a reminder, this is an individual assignment, please do not collaborate with other students. The completed tax forms and statements should be uploaded to D2L by Tuesday, March 22, at 11:59pm.
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