Alexa owns a condominium near Cocoa Beach in Florida. In 2022, 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. 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, her itemized deductions exceed the standard deduction before considering expenses associated with the condo, and her itemized deduction for non–home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the following questions: 

Required: 

What is the total amount of 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. 

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.

Would Alexa be better or worse off after taxes in the current year if she uses the Tax Court method of allocating expenses?

Answer rating: 100% (QA)

The total amount of AGI deductions relating to the condo that Alexa may deduct in the current year i... View the full answer