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Use the following information to complete Paige Turners 2017 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.

Use the following information to complete Paige Turners 2017 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. what is the depreciation? which form & what line should be filled?

Paige found a renter for her fathers house on August 1. The monthly rent is $400, and the lease agreement is for one year. The lease requires the tenant to pay the first and last months rent and a $400 security deposit. The security deposit is to be returned at the end of the lease if the property is in good condition. On August 1, Paige received $1,200 from the tenant per the terms of the lease agreement. In November, the plumbing froze and several pipes burst. The tenant had the repairs made and paid the $300 bill. In December, he reduced his rental payment to $100 to compensate for the plumbing repairs. Paige provides you with the following additional information for the rental in 2017.

Property taxes

$770

Other maintenance expenses

285

Insurance expense

495

Management fee

350

Depreciation (to be computed)

?

The rental property is located at 35 Harvest Street, Orono, Maine 04473. Local practice is to allocate 12 percent of the fair market value of the property to the land. (See #8.) Paige makes all decisions with respect to the property.

Thanks a lot

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