During the year (not a leap year), Anna rented her vacation home for 30 days, used it
Question:
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
a. Compute Anna's net rent income or loss and the amounts she can itemize on her tax return, using the court's approach to allocating property taxes and interest.
b. How would your answer in part (a) differ using the IRS's method of allocating property taxes and interest?
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a Gross income 7000 Deduct Taxes and interest 30365 11500 945 Remainder to apply to rental operating ...View the full answer
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Related Book For 
South Western Federal Taxation Individual Income Taxes 2017
ISBN: 9781305873988
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen
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