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.)
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.
In the current year, Sandra rented her vacation home for 75 days, used it for personal...
During 2019, Phoebe rented her vacation home for 75 days and stayed in his vacation home for 25 days. Gross rental income from the property was $8,200. Phoebe incurred the following expenses: mortgage interest, $4,600; real estate taxes, $1,300; utilities, $950; maintenance, $450; and depreciation, $4,000. Using the IRS’s approach, compute Phoebe’s net rental income or loss, showing all calculations.
During 2019, Phoebe rented her vacation home for 75 days and stayed in his vacation home for 25 days. Gross rental income from the property was $8,200. Phoebe incurred the following expenses: mortgage interest, $4,600; real estate taxes, $1,300; utilities, $950; maintenance, $450; and depreciation, $4,000. Using the IRS’s approach, compute Phoebe’s net rental income or loss, showing all calculations
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...
Matt and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (6 weeks) at $890 per week and used it for personal use for 58 days. The total costs of maintaining the home are as follows: Mortgage interest $4,200 Property taxes 700 Insurance 1,200 Utilities 3,200 Repairs 1,900 Depreciation 5,500 What is the proper tax treatment of this information on their tax return using the Tax Court method? Are there options...
Ben owns a cozy vacation cabin in the Black Hills. During 2018, Ben rented his cabin for three months and spent one month there with her own family. Gross rental income from the property was $5,000. Ben incurred the following expenses: mortgage interest, $3,000; real estate taxes, $1,500; utilities, $800; maintenance, $500; and depreciation, $4,000. A) Is Ben’s home primarily personal, primarily rental, or personal/rental? Explain fully. B) Compute Ben’s allowable deductions for the vacation home. Use the court approach....
Ben owns a cozy vacation cabin in the Black Hills. During 2018, Ben rented his cabin for three months and spent one month there with her own family. Gross rental income from the property was $5,000. Ben incurred the following expenses: mortgage interest, $3,000; real estate taxes, $1,500; utilities, $800; maintenance, $500; and depreciation, $4,000. A) Is Ben’s home primarily personal, primarily rental, or personal/rental? Explain fully. B) Compute Ben’s allowable deductions for the vacation home. Use the court approach....
Donald rents out his vacation home for 9 months and lives in his vacation home for the remainder of the year. His gross rental income for 2018 is $7,200. The expenses attributable to the vacation home for the entire year are as follows: Real estate taxes $2,000 Interest on mortgage loan 4,000 Utilities 1,200 Repairs/maintenance 600 Depreciation 3,500 What amount would Donald report as net income or loss from the rental of the vacation home?
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...
3. This question is worth 10 points During the year, Evan rented his vacation home for 60 days and spen 90 days there. Gross rental income from the property was $3,000. Evan incurred the following expenses mortgage interest, $2,000 real estate taxes, $2,500 utilities, $1,000 maintenance, $300, and depreciation, $$,000 Identify how this vacation home is treatod the type (personal, rental. personal/rental), and how your conclusion (state the nule and apply the facts to the rule) 2 Compute Evan's allowable...
Lynn and Bruce own a vacation cottage on the lakeside. They rented the cottage last year for 60 days, and used it for themselves and their family for 30 days. They had the following income and expenses for the cottage. Rental Income $22,000 Real Estate Taxes $6,000 Mortgage Interest Paid $9,000 Mortgage Principal Repaid $5,000 Electric, Phone, gas $4,000 Repairs $1,000 Insurance $1,000 Depreciation $8,000 Homeowners Assn. Fees $1,000 For real estate taxes and mortgage interest, there are two alternative approaches on how to allocate these, the "tax court approach" and...