Question
Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 1,350 Advertising
Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo:
Insurance | $ 1,350 |
---|---|
Advertising expense | 735 |
Mortgage interest | 5,050 |
Property taxes | 1,110 |
Repairs & maintenance | 1,120 |
Utilities | 1,440 |
Depreciation | 12,200 |
During the year, Natalie rented out the condo for 85 days, receiving $22,750 of gross income. She personally used the condo for 39 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.)
a. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?
Itemized deductions ____________
b. If Natalies basis in the condo at the beginning of the year was $178,000, what is her basis in the condo at the end of the year?
Basis in the condo _____________
c. Assume that gross rental revenue was $4,550 (rather than $22,750). What amount of for AGI deductions may Natalie deduct in the current year related to the condo?
For AGI deductions _____________
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