Question
Nicolette and Brady own a cabin in Lake Arrowhead, California, that they rent out during the winter and use the rest of the year. The
Nicolette and Brady own a cabin in Lake Arrowhead, California, that they rent out during the winter and use the rest of the year. The rental property is categorized as personal/rental property, and their personal use is determined to be 68% (based on the IRS method). They had the following income and expenses for the year (after allocation):
Gross rental income $ 9,650
Interest and taxes 6,075
Utilities and maintenance 2,545
Depreciation 4,450
How much can Nicolette and Brady deduct for depreciation expense related to this property for the year on their tax return?
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Fundamentals Of Taxation 2015
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
8th Edition
1259293092, 978-1259293122, 1259293122, 978-1259293092
