Donald owns a two-family home. He rents out the first floor and resides on the second floor. The following expenses attributable to the total building were incurred by Donald for the year ended December 31, 2018: Real estate taxes $1,800 Mortgage interest 1,600 Utilities 1,200 Repairs (first floor) 1,400 Painting (second floor) 400 In addition, the depreciation attributable to the entire building would be $2,000. What is the total amount of the expenses that Donald can deduct on Schedule E of Form 1040 (before any limitations)? a. $3,300 b. $3,850 c. $4,000 d. $4,700
Donald owns a two-family home. He rents out the first floor and resides on the second floor. The following expenses attributable to the total building were incurred by Donald for the year ended December 31, 2018: Real estate taxes $1,800 Mortgage interest 1,600 Utilities 1,200 Repairs (first floor) 1,400 Painting (second floor) 400 In addition, the depreciation attributable to the entire building would be $2,000. What is the total amount of the expenses that Donald can deduct on Schedule E of Form 1040 (before any limitations)? a. $3,300 b. $3,850 c. $4,000 d. $4,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Donald owns a two-family home. He rents out the first floor and resides on the second floor. The following
expenses attributable to the total building were incurred by Donald for the year ended December 31, 2018:
Real estate taxes $1,800
Mortgage interest 1,600
Utilities 1,200
Repairs (first floor) 1,400
Painting (second floor) 400
In addition, the
expenses that Donald can deduct on Schedule E of Form 1040 (before any limitations)?
a. $3,300
b. $3,850
c. $4,000
d. $4,700
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