Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 4,400 Mortgage interest Property taxes Repairs & maintenance Utilities 7,250 4,100 700 4,700 16,800 Depreciation During the year, Alexa rented out the condo for 130 days. She did not use the condo at all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 130 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $50,250 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo and that her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the following questions: Note that the home is considered to be a nonresidence with rental use. . What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses he IRS method of allocating expenses between rental and personal days. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 4,400 Mortgage interest Property taxes Repairs & maintenance Utilities 7,250 4,100 700 4,700 16,800 Depreciation During the year, Alexa rented out the condo for 130 days. She did not use the condo at all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 130 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $50,250 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo and that her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the following questions: Note that the home is considered to be a nonresidence with rental use. . What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses he IRS method of allocating expenses between rental and personal days. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses
the IRS method of allocating expenses between rental and personal days. (Do not round intermediate calculations. Round your final
answers to the nearest whole dollar amount.)
Gross rental income
Expenses:
Total expenses
Balance-net rental income
Total “for AGI" deductions
Transcribed Image Text:Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with
her condo:
Insurance
$ 4,400
Mortgage interest
Property taxes
Repairs & maintenance
Utilities
7,250
4,100
700
4,700
16,800
Depreciation
During the year, Alexa rented out the condo for 130 days. She did not use the condo at all for personal purposes during
the year. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no
sources of passive income.
Assume that in addition to renting the condo for 130 days, Alexa uses the condo for 8 days of personal use. Also assume
that Alexa receives $50,250 of gross rental receipts and her itemized deductions exceed the standard deduction before
considering expenses associated with the condo and that her itemized deduction for non-home business taxes is less
than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the following questions:
Note that the home is considered to be a nonresidence with rental use.
a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses
the IRS method of allocating expenses between rental and personal days. (Do not round intermediate calculations. Round your final
answers to the nearest whole dollar amount.)
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