Homework Answers
Solution:
a)
Piper's reports rental income of $0 and rental expenses of $0 for AGI , because the rental of the vacation cabin has no effect on Piper's AGI.
b)
| Utilities | $0 | It is not deductible |
| Insurance | $0 | It is not deductible |
| Property taxes | $1,500 | AGI |
| Mortgage interest | $10,000 | AGI |
| Maintenance expenses | $0 | It is not deductible |
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