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Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 1,000 Advertising
Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo:
Insurance | $ 1,000 |
---|---|
Advertising expense | 500 |
Mortgage interest | 3,500 |
Property taxes | 900 |
Repairs & maintenance | 650 |
Utilities | 950 |
Depreciation | 8,500 |
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 $150,000, what is her basis in the condo at the end of the year?
- Assume that gross rental revenue was $2,000 (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 $2,000 (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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