Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance $ 1,290 Advertising expense 825 Mortgage interest 5,400 Property taxes 970 Repairs & maintenance 770 Utilities 1,260 Depreciation 11,200 During the year, Tamar rented out the condo for 81 days, receiving $27,000 of gross income. She personally used the condo for 36 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 Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with 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 $186,000, what is her basis in the condo at the end of the year? d. Assume that gross rental revenue was $3,400 (rather than $27,000). 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 2023, she incurs the following expenses in connection with her condo: Insurance $ 1,290 Advertising expense 825 Mortgage interest 5,400 Property taxes 970 Repairs & maintenance 770 Utilities 1,260 Depreciation 11,200 During the year, Tamar rented out the condo for 81 days, receiving $27,000 of gross income. She personally used the condo for 36 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 Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with 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 $186,000, what is her basis in the condo at the end of the year? d. Assume that gross rental revenue was $3,400 (rather than $27,000). What amount of for AGI deductions may Tamar deduct in the current year related to the condo?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with
her condo: Insurance $ 1,290 Advertising expense 825 Mortgage interest 5,400 Property taxes 970 Repairs &
maintenance 770 Utilities 1,260 Depreciation 11,200 During the year, Tamar rented out the condo for 81 days, receiving
$27,000 of gross income. She personally used the condo for 36 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 Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current
year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.
Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the
condo (assuming she itemizes deductions before considering deductions associated with 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 $186,000, what is her basis in the condo at the end of the year? d. Assume that
gross rental revenue was $3,400 (rather than $27,000). What amount of for AGI deductions may Tamar deduct in the
current year related to the condo?
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