Spilker Chapter 14 assignment, due 1/17, 8 points When you rent out your home for more...
Please answer all the following questions. When you rent out your home for more than 14 days per year, you have to declare your income and may have to pay taxes. However, it is not as bad as it sounds. This is because certain costs of running a home that would otherwise not be deductible, such as utilities and insurance, become partially deductible when the home is used to produce rental income. The textbook on page 14-18 (see PPTS below)...
Utilities and maintenance deductible is? Deductible depreciation is? Net income from activity? If it’s approach is used for deduction, what is the net income from activity? What is the order of deduction? this is for the year ending in 2019. also i meant to put if the IRS aproach is used for the deductions what would be the net income from the activity. 2 points Saved QUESTION 49 B. During the year Martin rented his vacation home for three months...
uring the year, Anna rented her vacation home for 30 days, used it personally for 20 days, and left it vacant for 315 days. She had the following income and expenses: Rent income $7,000 Expenses Real estate taxes 2,500 Interest on mortgage 9,000 Utilities 2,400 Repairs 1,000 Roof replacement (a capital expenditure) 12,000 Depreciation $7,500 If an answer is zero, enter "0". Assume a 365-day year. In your computations round any fractions to four decimal places. Round your final answer...
The IRS allows you to reduce your adjusted gross income by either the amount of your standard deduction based on your filing status, or by the sum of your itemized deductions. The following statement refers to deductions from adjusted gross income. The government estimates a likely amount of tax-deductible expenses for each filing status to determine the The U.S. Individual Income Tax Return (Form 1040) Schedule A lists six areas of itemized deductions. Which of the following can be included...
Randolph and Tammy own a second home. They spent 45 days there and rented it for 88 days at $159 per day during the year. The total costs relating to the home include the following: (Round your intermediate computations to 5 decimal places and final answers to nearest whole dollar value). Mortgage interest $ 4,680 Property taxes 1,290 Insurance 1,935 Utilities 2,435 Repairs 1,545 Depreciation 6,680 a)What is the tax treatment of these items relating to second home under Tax...
Janet owns a home at the lake. She incurs the following expenses: Mortgage interest Property taxes $1,360 1,545 1.845 Repairs Depreciation 4060 Required: What is the proper treatment of the rental income and expenses in each of the following cases? Use the Tax Court allocation method, if applicable. Round your d e comutatons to 5 decimal places and final answers to nearest wole dollar value Rental Days Personal use Case income Rented Days A $ 9.150 B 12.150 55 C...
Please help. I am not getting the correct answer even after using samples. Can you please explain how to get the answer. Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance $ 3,750 Mortgage interest 11,400 Property taxes 4,500 Repairs & maintenance 560 Utilities 4,550 Depreciation 16,200 During the year, Alexa rented out the condo for 127 days. Alexa’s AGI from all sources other than the rental...
8. Rent versus buy analysis - Part 1 Which Is Better: To Rent or To Buy? The decision of whether to rent or buy housing is a personal decision that is based on both your lifestyle and your finances. While most financial experts argue that the financial aspect of the decision is important, it is also important not to base your rent-or-buy decision solely on the numbers. Your personal needs and housing market conditions are important. However, it is still...
Insurance $ 3,700 Mortgage interest Property taxes Repairs & maintenance 9, 650 4, 650 1,090 2,700 17,600 Utilities Depreciation During the year, Alexa rented out the condo for 120 days. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 120 days, Alexa uses the condo for eight days of personal use. Also assume that Alexa receives $48,500 of...
Considered a home, it must juma party no more than the greater of 182 days or 50% Rented out for the lesser of 30 days or 10% of the total number of Used for personal purposes during the tax year for more than the Rented to a third party at fair rental value for 15 days or more the days used personally. the property is rented at fair rental value. terol 14 days or 10% of the total number of...