Question

Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Clem's expenses that are deductible for AGI this year (if any) under the following independent circumstances: (Leave no answer blank. Enter zero if applicable.) b. Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,250 in utilities and $780 in depreciation.

Answer 1

Answer: b) is $2000.

Utilities and depreciation are allowable rental expenses. Which are deductible for AGI.

$$ \begin{array}{llr} \text { Utilities expense } & \$ & 1,250 \\ \text { Depreciation } & \$ & 780\\ \text { Deductible for AGI } & \$ & 2,030 \end{array} $$

Answer 2

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Answer is highlighted in yellow: solution: $ 2,030 Answer: b) Explanation: Utilities and depreciation are allowable rental expenses. Which are deductible for AGI. Utilities expense $ 1,250 Depreciation $ 780 Deductible for AGI $ 2,030