Alexa owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Mortgage interest $ 2,500 Property taxes Repairs & maintenance Utilities Depreciation 10,600 2,100 1,250 3,800 15,600 During the year, Alexa rented out the condo for 179 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 179 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $39,750 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: 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. From AGI deductions
Alexa owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Mortgage interest $ 2,500 Property taxes Repairs & maintenance Utilities Depreciation 10,600 2,100 1,250 3,800 15,600 During the year, Alexa rented out the condo for 179 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 179 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $39,750 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: 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. From AGI deductions
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 37P
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Transcribed Image Text:Alexa owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with
her condo:
Insurance
Mortgage interest
$ 2,500
Property taxes
Repairs & maintenance
Utilities
Depreciation
10,600
2,100
1,250
3,800
15,600
During the year, Alexa rented out the condo for 179 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 179 days, Alexa uses the condo for 8 days of personal use. Also assume
that Alexa receives $39,750 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:
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.
From AGI deductions
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