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Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance $ 1,000 Advertising
Natalie owns a condominium near Cocoa Beach in Florida. This year, 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.
- 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?
(*******The answer of 10,000 was marked incorrect****)
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