Question
John has a vacation condo in the Florida Keys that he rented out for two weeks in December for $250 a day. John has used
John has a vacation condo in the Florida Keys that he rented out for two weeks in December for $250 a day. John has used this vacation home himself for a total of three weeks during the year. His total ( unallocated) expenses for the condo are
Taxes: $1,500
Insurance: $2000
Repairs and maintenance: $1,100
Interest: $4,500
Depreciation for the year: $1,000
John received a call from his tenants and they want to extend their rental of the condo for another week. John is in the 35 percent marginal tax bracket. What tax factors should John consider in making the decision to extend the rental of the condo?
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