Question
S owns a condominium in Florida, which he and his family use occasionally. During the year, he used the condominium for 20 days and rented
S owns a condominium in Florida, which he and his family use occasionally. During the year, he used the condominium for 20 days and rented it for 40 days. The remainder of the year, the condominium was vacant. S compiled the following information related to the condominium for the entire year:
Rental income: $1,000
Expenses:
Interest on mortgage: $3,650
Maintenance: $900
Depreciation: $6,000
a) Compute the tax effect of the rental activity on S
b) Assuming S only used the condominium personally for ten days, compute the tax effect
c) Assuming S only rented the condominium for 14 days, compute the tax effect
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