Question
Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance $ 1,050 Advertising
Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo:
Insurance | $ 1,050 |
---|---|
Advertising expense | 965 |
Mortgage interest | 5,800 |
Property taxes | 1,080 |
Repairs & maintenance | 1,130 |
Utilities | 550 |
Depreciation | 8,700 |
During the year, Tamar rented out the condo for 94 days, receiving $22,500 of gross income. She personally used the condo for 50 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 Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year.
Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.
Required:
What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with the condo)?
What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo?
If Tamar's basis in the condo at the beginning of the year was $210,000, what is her basis in the condo at the end of the year?
Assume that gross rental revenue was $4,500 (rather than $22,500). What amount of for AGI deductions may Tamar deduct in the current year related to the condo?
Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: During the year, Tamar rented out the condo for 94 days, receiving $22,500 of gross income. She personally used the condo for 50 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 Tax Court method of allocating expenses to rental use of the property. Assume 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 itemizes deductions before considering deductions associated with the condo)? b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo? c. If Tamar's basis in the condo at the beginning of the year was $210,000, what is her basis in the condo at the end of the year? d. Assume that gross rental revenue was $4,500 (rather than $22,500 ). What amount of for AGI deductions may Tamar deduct in the current year related to the condo? \begin{tabular}{|l|l|} \hline a. For AGI (rental) deductions \\ \hline b. Itemized deductions \\ \hline c. Basis in the condo at the end of the year \\ \hline d. For AGI deductions \\ \hline \end{tabular}Step by Step Solution
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