A taxpayer operates some rental units, both commercial and residential, for a total of $175,000 in gross rental income during the year. They have the following rental expenses, ignoring depreciation: $45,000 in mortgage interest paid during the year on the properties. $6,000 in mortgage interest paid made to acquire a property placed into service later in the year. $27,500 in real estate taxes paid during the year on the properties. $10,000 in pre-paid real estate taxes on the properties meant for the following year. $30,000 in major upgrades to the properties made during the year. $12,000 in insurance premiums for the tax year. $12,000 in pre-paid insurance premiums for the next tax year. $16,000 in various other services like lawncare, janitorial services, and so on. 

What is the amount of net rental income for the year, not considering any depreciation on capitalized assets? 

Answer rating: 100% (QA)

To calculate the net rental income for the year we need to start with the gross rental income and su... View the full answer