Question
Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 1,330 Advertising
Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo:
Insurance | $ 1,330 |
---|---|
Advertising expense | 700 |
Mortgage interest | 5,700 |
Property taxes | 1,330 |
Repairs & maintenance | 750 |
Utilities | 1,030 |
Depreciation | 12,050 |
During the year, Natalie rented out the condo for 83 days, receiving $15,500 of gross income. She personally used the condo for 53 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 Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.)
d. Assume that gross rental revenue was $3,100 (rather than $15,500). What amount of for AGI deductions may Natalie deduct in the current year related to the condo?
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