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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 Mortgage interest Property taxes Repairs and maintenance Utilities 500 3,500 900 650 950 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. Assume there are 365 days in the year. Assume Natalie uses the IRS method of allocating expenses to rental use of the property. (For all requirements, do not round apportionment ratio. Round all other values to the nearest whole dollar amount.) Required: a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo? b. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo? c. If Natalie's 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? d. Assume that gross rental revenue was $1,000 (rather than $10,000). What amount of for AGI deductions may Natalie deduct in the current year related to the condo? a. For AGI deductions b. Itemized deductions c. Basis d. For AGI deductions
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