In the current year, Sandra rented her vacation home for 75 days, used it for personal...
In the current year, Sandra rented her vacation home for 75
days, used it for personal use for 22 days, and left it vacant for
the remainder of the year. Her income and expenses before
allocation are as follows:
| Rental income | $ | 15,000 | |
| Real estate taxes | 2,000 | ||
| Utilities | 1,500 | ||
| Mortgage interest | 3,800 | ||
| Depreciation | 7,200 | ||
| Repairs and maintenance | 1,300 | ||
What is Sandra’s net income or loss from the rental of her vacation
home? Use the Tax Court method. (Round your intermediate
computations to 5 decimal places and final answers to nearest whole
dollar value.)
Homework Answers
In Tax court method, Ratios of the days Rented by Number of days in a year is used for taxes and interest. Remaining expenses are divided proportionately.
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