3. This question is worth 10 points During the year, Evan rented his vacation home for...
3. This question is worth 10 points During the year, Evan rented his vacation home for 60 days and spent 90 days there. Gross rental income from the property was $3,000. Even incurred the following expenses: mortgage interest, $2,000; real estate taxes. $2,500; utilities, $1,000; maintenance, $300; and depreciation, $5,000. (a). Identify how this vacation home is treated the type (personal, rental, personal/rental), and how you came to your conclusion (state the rule and apply the facts to the rule)...
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....
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...
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...
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
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...
(The following information applies to the questions displayed below] Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland. He resided in the home for the remainder of the year Rental income from the property was $6,500. Expenses associated with use of the home for the entire year were as follows: Real property taxes Mortgage interest Repairs Insurance Utilities Depreciation 3,100 12,080 1,500 1,500 3,989 13.000 Book Print erences Problem 6-37 Part a...
Please answer all the following questions.
When you rent out your home for more than 14 days per year, you have to declare your income and may have to pay taxes. However, it is not as bad as it sounds. This is because certain costs of running a home that would otherwise not be deductible, such as utilities and insurance, become partially deductible when the home is used to produce rental income. The textbook on page 14-18 (see PPTS below)...