Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year, junior: - Personally stayod in tho home for 32 days. - Rented it to his favorite brother at a discount for 17 days - Rented it to his least-favorite brother for 17 doys at the full market rate. - Rented it to his friend at a discounted rate for 11 days. - Rented the home to third parties for 60 days at the market rate. - Did repair and maintenance work on the home for 3 days. - Marketed the property and made it available for rent for 217 doys during the year (but did not rent it out). How many days of personal use and how many days of rental use did Junior experience on the pipperty during the year? Leticia and Stephanie Sims purchased a home in Spokane, Washington, for $492,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of year 5 , when they sold the home for $890,000. Note: Leave no answer blank. Enter zero if applicable. Required: a. What amount of gain on the sale of the home are the Sims required to include in taxable income? b. Assume the original facts, except that Leticia and Stephanie live in the home until January 1 of year 3 , when they purchase a new home and rent out the original home. They finally sell the original home on June 30 of year 5 for $890,000. Ignoring any issues relating to depreciation taken on the home while it is being rented, whot amount of realized gain on the sale of the home are the Simses required to include in taxable income? c. Assume the same facts as in part (b), except that the Sims live in the home until January of year 4 , when they purchase a new home and rent out the first home. What amount of realized goin on the sale of the home wil the Sims include in taxable income if they sell the first home on June 30 of year 5 for $890.000 ? d. Assune the original facts, except that Stephanie moves in with Leticia on March 1 of year 3 and the couple is married on March 1 of year 4 , Under state law, the couple jointy owns Leticia's home beginning on the date they are married. On December 1 of year 3 . Stephanie sells her home that she lived in before she moved in with Letiela. She excludes the entire $148.000 gain on the sale on her individual year 3 tax return. What omount of gain must the couple recognize on the sole in June of year 5 ? Problem 14-45 (LO 14-3) (Algo) Javier and Anita Sanchez purchased a home on January 1, 2022, for $636,000 by paying $212,000 down and borrowing the remaining $424,000 with a 7 percent loan secured by the home. The loan requires interest-only payments for the first five years. The Sanchezes would itemize deductions even if they did not have any deductible interest. The Sanchezes' marginal tax rate is 32 percent. Required: a. What is the after-tax cost of the interest expense to the Sanchezes in 2022? Note: Round your intermediate calculations to the nearest whole dollar amount. b. Assume the original facts, except that the Sanchezes rent a home and pay $29,680 in rent during the year. What is the after-tax cost of their rentat payments in 2022 ? c. Assurning the interest expense is their only itemized deduction for the year and that Javier and Anita file a joint return, have great eyesight, and are under 60 years of age, what is the after-tax cost of their 2022 interest expense? Note: Round your intermediate calculations and the final answer to the nearest whole dollar amount. Problem 14.47 (LO 14-3) (Algo) Lewis and Lourie are married and jointly own a home valued at $243.000. They recently paid off the mortgage on their home. The couple botrowed inoney from the local creda union in January of 2022. How much intercst may the couple deduct in eoch of the following alternative situstions? (Assume they itemize deductions no matier the amount of interest) Note: Leave no answer biank. Enter zero if applicable. Aequired: a. The couple borrows $43000, and the logn is secued by their home. The credit union cals the loan a "home equaty loan" Lewis and Laurie use the loan proceeds for purposes unrelated to the home. The covple pays $1,900 interest on the loan during the year, and the couple fies a joint return. b. The couple borrows $150.000 and the loan is secured by their home. The creda union calls the loan a "home equaty loan."Lewis and Laurie use the loan proceeds to edd a room to their home. The couple pays 55,350 interest on the loan duang the yeac, and the couple files a joint return Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in lroland. He resided in the home for the remainder of the year. Rental income from the property was $6,000. Expenses associated with use of the home for the entire year were as foliows: a. What effect does the rental have on Dillon's AGi? b. What effect does the rental have on Dillons itemized deductions (assuming he itemizes deductions before considering deductions associated with the homej? Answer is complete but not entirely correct. Complete this questien by entering your answers in the tabs below. Whot effect dees the rentai have on Dilion's itemized deductions (assuming he itemizes deductions before considering deductions associsted with the home)? Tamat owns a condominium near Cocon Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: During the year, Tamar rented out the condo for 99 days, receiving $22,000 of gross income 5 phe personally used the condo for 52 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property Assume Tamar uses the Tor Court method of allocating expenses to rental use of the property. Assumd 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGi (rental) deductions Tamar may deduct in the current year related to the condo (assuming she iemites deductions bofore considering deductions associated with the condo)? b. What is the total amcunt of itemiqed deductions Tamar may doduct in the current year related to the condo? c. M Tamar's basis in the condo at the beginning of the year was $159.000, what is her basis in the condo at the end of the year? d. Assume that gross rental revenue was $3,400 (rather than $22.000. What amount of for AGI deductions may Tamar deduct in the curtent year related to the condo? Rita owns a sole proprietorship in which she works as a management consultant. She maintains an otfice in her home ( 500 square feet) where she meets with clients, prepares bilis, and performs other work-related tasks. Her business expenses, other than home office expenses, total $5,780. The following home-related expenses have been allocated to her home otfice under the actual expense method for caiculating home office expenses. Also, assume that, not counting the sole proprietorship. Rita's AGI is $61,800. Rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Assume Rita's consulting business generated $15,450 in gross income. Note: Leave no answer blank. Enter zero if applicable. Required: a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $10,450 of gross income instead of $15,450 ? (Answer for: both the actual expense method and the simplitied method) c. Given the original facts, what is Rita's AGI for the year? d. Given the original facts, what types and amounts of expenses will she carry over to next year