Question
Petya owns a condominium in the Hilton Head Island, South Carolina. During the year, Petya uses the condo a total of 25 days. The condo
Petya owns a condominium in the Hilton Head Island, South Carolina. During the year, Petya uses the condo a total of 25 days. The condo is also rented to vacationers for a total of 100 days and generates rental income of $38,000. Petya incurs the following expenses: Expense Amount Mortgage interest $ 10,000 Property taxes 14,800 Utilities 4,000 Insurance 2,800 Depreciation (Annual) 17,500 Using the IRS method of allocating expenses, the amount of depreciation that Katarina may take with respect to the rental property will be A) $ 3,500. B) $ 6,780 C) $12,720. D) $14,000.
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