Question: How would you enter this information in Schedule E and any other forms needed Phil inherited a river cottage from his parents when they died

How would you enter this information in Schedule E and any other forms needed

Phil inherited a river cottage from his parents when they died (May14, 2002) which he rents out during the year. Phil actively manages the rental. The cottage had cost his parents $10,000 ($1,000 land) in 1981; the FMV on May 14, 2002 was $95,000 ($10,000 land). The house has always been a rental property, and Phil and Jannie normally used it for two weeks for their vacation. In 2017 however, they used it for 30 days since they both took extended vacations. It was actually rented out for 207 days during 2017. It is located at 212 Mohawk Way, Albany, NY 13600. For 2017, Phil had the following income and expenses with respect to the rental property:

Rentals collected $30,710

Advertising 4,378

Cleaning and maintenance 819

Insurance 914

Repairs 504

Taxes 2,709

Miscellaneous 76

During 2017, he purchased new appliances for the home on May 6 costing $1,900; and installed a new roof on July 20 costing $12,500.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!