Georgia and Mike own a beach house that they rent out on Airbnb. In 2021 they rented the housefor 100 days and used the house for personal purposes for 12 days. Rental income was $65,000and rental expenses were $67,000.(a) How much, if any, of the rental expenses may Georgia and Mike deduct?(b) What if, instead, they used the house for personal purposes for 15 days? How much, ifany, of the rental expenses may Georgia and Mike deduct?

Answered: s and used the house for personal…

s and used the house for personal purposes for 12 days. Rental income was $65,00 =xpenses were $67,000. v much, if any, of the rental expenses may Georgia and Mike deduct?

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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Question

Georgia and Mike own a beach house that they rent out on Airbnb. In 2021 they rented the house
for 100 days and used the house for personal purposes for 12 days. Rental income was $65,000
and rental expenses were $67,000.
(a) How much, if any, of the rental expenses may Georgia and Mike deduct?
(b) What if, instead, they used the house for personal purposes for 15 days? How much, if
any, of the rental expenses may Georgia and Mike deduct?

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