Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: $ 2,000 6,500 Insurance Mortgage interest Property taxes Repairs & maintenance Utilities 2,000 1,400 2,500 14,500 Depreciation During the year, Alexa rented out the condo for 100 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 Alexa receives $30,000 in gross rental receipts. What effect do the expenses associated with the property have on her AGI?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with
her condo:
$ 2,000
6,500
2,000
Insurance
Mortgage interest
Property taxes
Repairs & maintenance
Utilities
1,400
2,500
14,500
Depreciation
During the year, Alexa rented out the condo for 100 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 Alexa receives $30,000 in gross rental receipts.
a. What effect do the expenses associated with the property have on her AGI?
Gross rental income
Expenses:
Less: total expenses
Balance-net rental income
Transcribed Image Text:Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: $ 2,000 6,500 2,000 Insurance Mortgage interest Property taxes Repairs & maintenance Utilities 1,400 2,500 14,500 Depreciation During the year, Alexa rented out the condo for 100 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 Alexa receives $30,000 in gross rental receipts. a. What effect do the expenses associated with the property have on her AGI? Gross rental income Expenses: Less: total expenses Balance-net rental income
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