Question
Suzanne purchased a condo in Daytona Beach, Florida,for $640,000 in January of the current tax year. She'sbeen very lucky to be able to spend twomonths
Suzanne purchased a condo in Daytona Beach, Florida, for $640,000 in January of the current tax year. She's been very lucky to be able to spend two months of the year at the condo (60 days). She also rented the condo for 180 days of the year. She received $45,000 cash from the tenant during the rental period.
Suzanne had to take a mortgage out on the condo and has paid $23,000 in mortgage interest during the year. Real-estate taxes on the condo were $12,700 for the year. She also paid the following amounts:
Electricity and water | $5,433 |
Maintenance fees | $7,800 |
Sewage fees | $1,100 |
Insurance for the year | $1,400 |
Painting costs | $5,400 |
Pool upkeep | $700 |
Advertising | $400 |
Suzanne has asked you to advise her on how to complete Schedule E for her tax return. She is interested in not only reporting the lowest income but also maximizing her deductions on the tax return.
Suzanne files single status, and her AGI before any rental income or loss is $133,000.
Complete Suzanne's Schedule E, Form 4562, and Form 8582 using the current-year tax forms at the IRS website links to an external site. Also, attach any supporting calculations.
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Schedule E Supplemental Income and Loss Part I Income or Loss From Rental Real Estate or Royalties Line 18 Total income Rental income 45000 Line 19 De...Get Instant Access to Expert-Tailored Solutions
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