Marcus owns a beach front condo in Fort Myers, Florida. During 2021, Marcus rented his condo...
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Marcus owns a beach front condo in Fort Myers, Florida. During 2021, Marcus rented his condo for 80 days and spent 28 days there with his own family and friends. Marcus had the following income and expenses related to the cabin: Rental income Insurance Utilities Maintenance Mortgage interest Property taxes Depreciation $11,600 8,000 3,000 2,080 4,200 9,110 7,620 1. Is Marcus' home primarily personal, primarily rental, or personal/rental? Explain fully. 2. Compute Marcus' allowable deductions for the vacation home. Use the Court approach. Round all amounts to the nearest dollar. 3. Compute Marcus' allowable deductions for the vacation home. Use the IRS approach. Round all amounts to the nearest dollar. Marcus owns a beach front condo in Fort Myers, Florida. During 2021, Marcus rented his condo for 80 days and spent 28 days there with his own family and friends. Marcus had the following income and expenses related to the cabin: Rental income Insurance Utilities Maintenance Mortgage interest Property taxes Depreciation $11,600 8,000 3,000 2,080 4,200 9,110 7,620 1. Is Marcus' home primarily personal, primarily rental, or personal/rental? Explain fully. 2. Compute Marcus' allowable deductions for the vacation home. Use the Court approach. Round all amounts to the nearest dollar. 3. Compute Marcus' allowable deductions for the vacation home. Use the IRS approach. Round all amounts to the nearest dollar.
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1 To determine whether Marcuss beachfront condo is primarily personal primarily rental or personalrental we need to compare the number of days it was ... View the full answer
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
Posted Date:
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