Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer question number 5 only thank you 4. Net Rental Income. (Obj. 1) Sandee, a cash basis taxpayer, owns a house with two identical

Please answer question number 5 only thank youimage text in transcribedimage text in transcribed

4. Net Rental Income. (Obj. 1) Sandee, a cash basis taxpayer, owns a house with two identical units. Sandee resides in one unit and rents out the other. The tenant made timely monthly rental payments of $500 for the months of January through November 2020. The tenant paid rents for December 2020 and January 2021 on January 5, 2021. During the year, Sandee paid $3,600 for utilities and $600 for insurance. These expenses were for the entire house. She paid $400 for maintenance and repairs on the rental unit. Depreciation on the entire house equals $3,000. Compute Sandee's 2020 net rental income. 5. Vacation Homes. (Obj. 2) Dari owns a vacation home that she personally uses 14 days during the year. The rest of the year the following occupants used the home. Fair rental price is $125 a night. Occupant Number of Days Dari's best friend, who paid no rent 8 Dari's brother, who paid a fair rental price 21 Couple who won a charity auction 7 Unrelated persons, who paid rent of $7,500 60 Dari's expenses related to the vacation home were as follows: Mortgage interest $ 6,700 Real estate taxes 3,300 Utilities and repairs 2,540 Depreciation 6,650 $19,190 Rental Activities 9-23 Dari's expenses related to the vacation home were as follows: Mortgage interest Real estate taxes Utilities and repairs Depreciation $ 6,700 3,300 2,540 6,650 $19,190 a. Compute the number of (1) days the property was rented at a fair rental price; (2) total days the property was used during the year; and (3) personal days. Discuss the significance of these three numbers as they pertain to the vacation home rules. b. Compute Dari's net rental income and any expenses that she must carry over to the next year. 6. Vacation Homes. (Obj. 2) Henry owns a fishing cabin in Wisconsin. Henry offered the cabin for rent from June 1 through September 30, except for 16 days in August when his family used UL

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

a. Describe the encounter. What made it intercultural?

Answered: 1 week ago