Mackensie owns a condominium in the Great Smokey Mountains. During the year, Mackensie uses the condo a total of 21 days. The condo is also rented to tourists for a total of 79 days and generates rental income of 12,500. Mackensie also incurs the following expenses: Mortgage interest 4,100, property taxes 1,900, Utiites 2,200, insurance 1,200, depreciation 10,000 Using the IRS method allocating expenses, calculate the amount of depreciation that Mackensie may take with respect to the rental property.

Mackensie owns a condominium in the Great Smokey Mountains. During the year, Mackensie uses the condo a total of 21 days. The condo is also rented to tourists for a total of 79 days and generates rental income of 12,500. Mackensie also incurs the following expenses: Mortgage interest 4,100, property taxes 1,900, Utiites 2,200, insurance 1,200, depreciation 10,000 Using the IRS method allocating expenses, calculate the amount of depreciation that Mackensie may take with respect to the rental property.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 56P: Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters,...

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