Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: $ 1,270 710 Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation 6,300 1,150 800 840 10,950 During the year, Natalie rented out the condo for 98 days, receiving $31,250 of gross income. She personally used the condo for 40 days during her vacation. Natalie's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.)
Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: $ 1,270 710 Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation 6,300 1,150 800 840 10,950 During the year, Natalie rented out the condo for 98 days, receiving $31,250 of gross income. She personally used the condo for 40 days during her vacation. Natalie's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.)
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 55P
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![Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with
her condo:
$ 1,270
Insurance
Advertising expense
Mortgage interest
Property taxes
Repairs & maintenance
710
6,300
1,150
800
Utilities
840
Depreciation
10,950
During the year, Natalie rented out the condo for 98 days, receiving $31,250 of gross income. She personally used the
condo for 40 days during her vacation. Natalie's itemized deduction for nonrental taxes is less than $10,000 by more than
the property taxes allocated to the rental use of the property.
Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the
current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba0907a9-6c52-4bb2-92a1-adea0cb5c93c%2Fdc3b65a3-41c3-4566-a5f3-dfc1f87e4c95%2F66mdk7_processed.png&w=3840&q=75)
Transcribed Image Text:Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with
her condo:
$ 1,270
Insurance
Advertising expense
Mortgage interest
Property taxes
Repairs & maintenance
710
6,300
1,150
800
Utilities
840
Depreciation
10,950
During the year, Natalie rented out the condo for 98 days, receiving $31,250 of gross income. She personally used the
condo for 40 days during her vacation. Natalie's itemized deduction for nonrental taxes is less than $10,000 by more than
the property taxes allocated to the rental use of the property.
Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the
current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.)
![a. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?
Itemized deductions
b. If Natalie's basis in the condo at the beginning of the year was $168,000, what is her basis in the condo at the end of the year?
Basis in the condo](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba0907a9-6c52-4bb2-92a1-adea0cb5c93c%2Fdc3b65a3-41c3-4566-a5f3-dfc1f87e4c95%2F0qrq76u_processed.png&w=3840&q=75)
Transcribed Image Text:a. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?
Itemized deductions
b. If Natalie's basis in the condo at the beginning of the year was $168,000, what is her basis in the condo at the end of the year?
Basis in the condo
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