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undefined Chee, single, age 40, had the following income and expenses during 2020: Income Salary $43,000 Rental of vacation home (rented 60 days, used personally
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Chee, single, age 40, had the following income and expenses during 2020: Income Salary $43,000 Rental of vacation home (rented 60 days, used personally 60 days, vacant 245 days) 4,000 Municipal bond interest 2,000 Dividend from General Electric 400 Expenses Interest on home mortgage 8,400 Interest on vacation home 4,758 3,100 Interest on loan used to buy municipal bonds Property tax on home Property tax on vacation home 2,200 1,098 State income tax 3,300 State sales tax 900 Charitable contributions 1,100 Tax return preparation fee 300 Utilities and maintenance on vacation home 2,600 Depreciation on rental portion of vacation home 3,500 Calculate Chee's net income from the vacation home, itemized deductions and taxable income for the year. If Chee has any options, choose the method that maximizes his deductions. In your computations, round any fractions to four decimal places. Then, round any amounts to the nearest dollar. If an amount is zero, enter "O". Assume 365 days in a year. a. Net income from vacation home: $ b. Itemized deductions: $ c. Taxable incomeStep by Step Solution
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