Question

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

Answer 1

Answer :

Particular		Amount
Gross Rental Income		$8,200
Less :-
Interest on mortgage ( $4,600 × No. of days rented / No.of days vacation home used	$4,600 × (75/100)	($3,450)
Real estate taxes ($1,300 × No.of days rented / No. Of days in vacation home used)	$ 1,300 × (75/100)	($975)
Utilities ($950 × No. Of days rented / No of days vacation home used)	$950 × (75/100)	($712.5)
Maintenance ($ 450 × No. of days rented/ No. Of days vacation home used)	$450 × (75/100)	($337.5)
Deprecation($ 4,000 × No.of days rented/ No. Of days vacation home used)	$4,000 × (75/100)	($3,000)
Net rental loss		($275)