Tax ACC ch 6

The following information applies to the questions displayed below.] Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

Insurance	$	720
Advertising expense		915
Mortgage interest		4,350
Property taxes		1,480
Repairs & maintenance		1,070
Utilities		730
Depreciation		9,000

During the year, Natalie rented out the condo for 99 days, receiving $22,000 of gross income. She personally used the condo for 52 days during her vacation. Assume there are 365 days in the year.

Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo?

For AIG dedutions-

b. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?

Itemized dedutions-

c. If Natalies 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?

Basis-

d. Assume that gross rental revenue was $3,400 (rather than $22,000), what amount of for AGI deductions may Natalie deduct in the current year related to the condo?

For AIG dedutions-