Justin owns a 3 bedroom condominium near Aspen, CO. This year, he incurs the following expenses in connection with his condo:

Insurance $ 11,800

Advertising expense 7,500

Mortgage interest 38,500

Property taxes 18,800

Maintenance 14,500

Utilities 12,750

Management Fees 32,500

New Roof 25,000

Depreciation 21,500

During the year, the property was rented out for 275 days, receiving $325,000 of gross income. Justin personally used the condo for 25 days during his vacation.

Assume Justin uses the IRS method of allocating expenses to rental use of the property.

a. What is the total amount of for AGI (rental) deductions Justin may deduct in the current year related to the condo?

b. What is the total amount of itemized deductions Justin may deduct in the current year related to the condo?

c. If Justins basis in the condo at the beginning of the year was $850,000, what is his basis in the condo at the end of the year?