Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Advertising expense DE Mortgage interest Property taxes Utilities Depreciation Repairs & maintenance $ 1,050 965 5,800 1,080 1,130 550 8,700 During the year, Tamar rented out the condo for 94 days, receiving $22,500 of gross income. She personally used the condo for 50 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.
Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Advertising expense DE Mortgage interest Property taxes Utilities Depreciation Repairs & maintenance $ 1,050 965 5,800 1,080 1,130 550 8,700 During the year, Tamar rented out the condo for 94 days, receiving $22,500 of gross income. She personally used the condo for 50 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo?
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: $1,050
- Advertising expense: $965
- Mortgage interest: $5,800
- Property taxes: $1,080
- Repairs & maintenance: $1,130
- Utilities: $550
- Depreciation: $8,700
During the year, Tamar rented out the condo for 94 days, receiving $22,500 of gross income. She personally used the condo for 50 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.**
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