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Required: What effect do the expenses associated with the property have on her AGI? What effect do the expenses associated with the property have on her itemized deductions?

Required: What effect do the expenses associated with the property have on her AGI? What effect do the expenses associated with the property have on her itemized deductions?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance $ 2,000 Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation 6,500 2,000 1,400 2,500 14,500 During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes during the year. 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 Alexa receives $30,000 in gross rental receipts. Required: What effect do the expenses associated with the property have on her AGI? What effect do the expenses associated with the property have on her itemized deductions?
Transcribed Image Text:Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance $ 2,000 Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation 6,500 2,000 1,400 2,500 14,500 During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes during the year. 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 Alexa receives $30,000 in gross rental receipts. Required: What effect do the expenses associated with the property have on her AGI? What effect do the expenses associated with the property have on her itemized deductions?
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