Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 1,020 510 3,570 909 660 960 8,700 During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Tamar'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 Tamar uses the IRS method of allocating expenses to rental use of the property. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo? b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo? c. If Tamar's basis in the condo at the beginning of the year was $150,000, what is her basis in the condo at the end of the year? d. Assume that gross rental revenue was $2,000 (rather than $10,000). What amount of for AGI deductions may Tamar deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with the condo)? e. Assuming that gross rental revenue was $2,000 (rather than $10,000) and that Tamar's itemized deduction for taxes is $10,000 before considering property taxes allocated to rental use of the property, what amount of for AGI deductions may Tamar deduct in the current year related to the condo?
Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 1,020 510 3,570 909 660 960 8,700 During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Tamar'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 Tamar uses the IRS method of allocating expenses to rental use of the property. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo? b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo? c. If Tamar's basis in the condo at the beginning of the year was $150,000, what is her basis in the condo at the end of the year? d. Assume that gross rental revenue was $2,000 (rather than $10,000). What amount of for AGI deductions may Tamar deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with the condo)? e. Assuming that gross rental revenue was $2,000 (rather than $10,000) and that Tamar's itemized deduction for taxes is $10,000 before considering property taxes allocated to rental use of the property, what amount of for AGI deductions may Tamar deduct in the current year related to the condo?
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 69P
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![[The following information applies to the questions displayed below.]
Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in
connection with her condo:
Insurance
Advertising expense
Mortgage interest
Property taxes
Repairs & maintenance
Utilities
Depreciation
$ 1,020
510
3,570
909
660
960
8,700
During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally
used the condo for 35 days during her vacation. Tamar'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 Tamar uses the IRS method of allocating expenses to rental use of the property.
Required:
a. What is the otal amount of for AGI (rental) deductions Tamar may deduct in current year related to the condo?
b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo?
c. If Tamar's basis in the condo at the beginning of the year was $150,000, what is her basis in the condo at the end of the
year?
d. Assume that gross rental revenue was $2,000 (rather than $10,000). What amount of for AGI deductions may Tamar deduct
in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with
the condo)?
e. Assuming that gross rental revenue was $2,000 (rather than $10,000) and that Tamar's itemized deduction for taxes is
$10,000 before considering property taxes allocated to rental use of the property, what amount of for AGI deductions may
Tamar deduct in the current year related to the condo?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F387615d0-f1d5-44ee-a43a-a66b40a1b792%2F267aa744-8c82-4cb0-b52f-1f60add55ea0%2Fwhald4_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in
connection with her condo:
Insurance
Advertising expense
Mortgage interest
Property taxes
Repairs & maintenance
Utilities
Depreciation
$ 1,020
510
3,570
909
660
960
8,700
During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally
used the condo for 35 days during her vacation. Tamar'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 Tamar uses the IRS method of allocating expenses to rental use of the property.
Required:
a. What is the otal amount of for AGI (rental) deductions Tamar may deduct in current year related to the condo?
b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo?
c. If Tamar's basis in the condo at the beginning of the year was $150,000, what is her basis in the condo at the end of the
year?
d. Assume that gross rental revenue was $2,000 (rather than $10,000). What amount of for AGI deductions may Tamar deduct
in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with
the condo)?
e. Assuming that gross rental revenue was $2,000 (rather than $10,000) and that Tamar's itemized deduction for taxes is
$10,000 before considering property taxes allocated to rental use of the property, what amount of for AGI deductions may
Tamar deduct in the current year related to the condo?
Transcribed Image Text:Note: For all requirements, do not round apportionment ratio. Round all other dollar values to the nearest whole dollar
amount.
Answer is complete but not entirely correct.
$ 10,000
$
1,425
$ 145,363
$
3,564
$
1,432
a. For AGI (rental) deductions
b. Itemized deductions
c. Basis at the end of the year
d. For AGI deductions
e. For AGI deductions
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VIEWStep 2: Determination of total amount for AGI (rental) deductions T may deduct in the current year.
VIEWStep 3: Determination of total amount of itemized deductions T may deduct in current year
VIEWStep 4: Determination of basis of C at the end of year
VIEWStep 5: Determination of AGI deductions T may deduct related to C.
VIEWStep 6: Determination of AGI deductions T deduct related to C
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