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Problem 6-49 (LO. 3) During the year (not a leap year), Anna rented her vacation home for 87 days, used it personally for 13 days,
Problem 6-49 (LO. 3) During the year (not a leap year), Anna rented her vacation home for 87 days, used it personally for 13 days, and left it vacant for 265 days. Use the IRS's method of allocating property taxes and interest. She had the following income and expenses: $7,000 2,500 9,000 Rent income Expenses Real estate taxes Interest on mortgage Utilities Repairs Roof replacement (a capital expenditure) Depreciation 2,400 1,000 12,000 7,500 If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Assume 365 days in a year. a. Is her vacation home classified as rental property? b. Compute the following regarding the rental use of the property: Gross income: Total expenses: C. Anna has a this year. d. What amount of the real estate taxes can Anna deduct as an itemized deduction? e. What amount of the mortgage interest can Anna deduct as an itemized deduction
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