Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she Incurs the following expenses in connection with her condo: Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 2,000 6,500 2,000 1,400 2,500 14,500 During the year, Alexa rented out the condo for 100 days. 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 100 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $30,000 of gross rental receipts, her itemized deductions exceed the standard deduction before considering expenses associated with the condo, and 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: Required: 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. Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount. b. What is the total amount of from 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. Note: Do not round Intermediate calculations. Round your final answer to the nearest whole dollar amount. c. Would Alexa be better or worse off after taxes in the current year if she uses the Tax Court method of allocating expenses?
Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she Incurs the following expenses in connection with her condo: Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 2,000 6,500 2,000 1,400 2,500 14,500 During the year, Alexa rented out the condo for 100 days. 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 100 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $30,000 of gross rental receipts, her itemized deductions exceed the standard deduction before considering expenses associated with the condo, and 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: Required: 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. Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount. b. What is the total amount of from 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. Note: Do not round Intermediate calculations. Round your final answer to the nearest whole dollar amount. c. Would Alexa be better or worse off after taxes in the current year if she uses the Tax Court method of allocating expenses?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A8
Transcribed Image Text:Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she Incurs the following expenses in connection with her condo:
$ 2,000
6,500
2,000
1,400
2,500
14,500
Insurance
Mortgage interest
Property taxes
Repairs & maintenance
Utilities
Depreciation
During the year, Alexa rented out the condo for 100 days. 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 100 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa
receives $30,000 of gross rental receipts, her itemized deductions exceed the standard deduction before considering expenses
associated with the condo, and 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:
Required:
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.
Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.
b. What is the total amount of from 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.
Note: Do not round Intermediate calculations. Round your final answer to the nearest whole dollar amount.
c. Would Alexa be better or worse off after taxes in the current year if she uses the Tax Court method of allocating expenses?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required A
Required B Required C
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.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
For AGI deductions
< Required A
Required B >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education