Question

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

Insurance	$	3,900
Mortgage interest		10,700
Property taxes		3,000
Repairs & maintenance		1,000
Utilities		4,900
Depreciation		15,700

During the year, Alexa rented out the condo for 137 days. She did not use the condo at all for personal purposes during the year. 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 137 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $41,250 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo. Answer the following questions:

Note that the home is considered to be a nonresidence with rental use.

b. What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days

Answer 1

- 157+8 = 145 days 41250 gross rental income 165 Expenses 3684.8 Insurance (137x3900) BARRA 10109.6 mortagage (137X10700) > 1048111 property taxes ('37 3000) — 2834.4 Repairs (137x1000) - 444.8 extilities (137 x4900) Depreciation (137x15700) > 14833.7 39037.2 (32037.2) lessi- total expenses 145 145 ( 745 4212.7 rental income Balance - net Total amount > (32037.2)

Answer 2

this is FOR AFI not FROM