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Janet owns a home at the lake. She incurs the following expenses: Mortgage interest $1,300 Property taxes 800 Insurance 1,500 Utilities 1,800 Repairs 300 Depreciation
Janet owns a home at the lake. She incurs the following expenses:
Mortgage interest | $1,300 |
Property taxes | 800 |
Insurance | 1,500 |
Utilities | 1,800 |
Repairs | 300 |
Depreciation | 4,000 |
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What is the proper treatment of the rental income and expenses in each of the following cases? Use the Tax Court allocation method, if applicable.
Case | Rental Income | Days Rented | Personal-Use Days |
A | $9,000 | 45 | 10 |
B | 12,000 | 55 | 25 |
C | 6,000 | 10 | 30 |
D | 22,000 | 365 | 0 |
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