Suppose you purchased an apartment complex in December of 2018 for $800,000. The cash flow for...

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Suppose you purchased an apartment complex in December of 2018 for $800,000. The cash flow for the rental in 2020 is shown below. Cash Inflows Rent received Cash Outflows Advertising Cleaning & Maintenance. Insurance Legal fees Management fees Mortgage interest Mortgage principal Repairs Taxes (property) Utilities Purchased new fridge on 9/1/20 Installed new flooring on 4/24/20 Total Cash Outflow Net cash flow 100,000 1,200 2,400 3,300 1,200 6,000 34,000 9,000 3,200 9,600 8,800 2,400 5,000 86,100 13,900 (1) Calculate the total depreciation deduction. Show your work for partial credit. (2) Calculate your net taxable income or loss from this property in 2020. Show your work for partial credit. Suppose you purchased an apartment complex in December of 2018 for $800,000. The cash flow for the rental in 2020 is shown below. Cash Inflows Rent received Cash Outflows Advertising Cleaning & Maintenance. Insurance Legal fees Management fees Mortgage interest Mortgage principal Repairs Taxes (property) Utilities Purchased new fridge on 9/1/20 Installed new flooring on 4/24/20 Total Cash Outflow Net cash flow 100,000 1,200 2,400 3,300 1,200 6,000 34,000 9,000 3,200 9,600 8,800 2,400 5,000 86,100 13,900 (1) Calculate the total depreciation deduction. Show your work for partial credit. (2) Calculate your net taxable income or loss from this property in 2020. Show your work for partial credit.

Answer rating: 100% (QA)

To calculate the total depreciation deduction we first need to determine the depreciable basis of th... View the full answer