Question
Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 1,220 Advertising
Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo:
Insurance $ 1,220
Advertising expense 610
Mortgage interest 4,270
Property taxes 999
Repairs & maintenance 760
Utilities 1,060
Depreciation 10,700
During the year, Natalie rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 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 IRS method of allocating expenses to rental use of the property.
What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo?
What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?
If Natalies basis in the condo at the beginning of the year was $172,000, what is her basis in the condo at the end of the year?
Assume that gross rental revenue was $4,200 (rather than $10,000).
What amount of for AGI deductions may Natalie deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with the condo)?
Assuming that gross rental revenue was $4,200 (rather than $10,000) and that Natalie's itemized deduction for taxes is $10,000 before considering property taxes allocated to rental use of the property, what amount of for AGI deductions may Natalie deduct in the current year related to the condo?
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