Tyson owns a condominium near Laguna Beach, California. This year, he incurs the following expenses in connection with his condo: Insurance $ 1,000 Mortgage interest 7,500 Property taxes 3,200 Repairs and maintenance 800 Utilities 1,700 Depreciation 5,700 During the year, Tyson rented the condo for 100 days, receiving $25,000 of gross income. He personally used the condo for 60 days. Assume Tyson uses the Tax Court method of allocating expenses to rental use of the property. Tyson itemizes deductions, and the sum of his itemized deduction for non-home business taxes and the real property taxes allocated to rental use of the home is less than $10,000. What is Tyson's net rental income for the year (assume this is not a leap year)?
Tyson owns a condominium near Laguna Beach, California. This year, he incurs the following expenses in
connection with his condo:
Insurance $ 1,000
Mortgage interest 7,500
Property taxes 3,200
Repairs and maintenance 800
Utilities 1,700
Depreciation 5,700
During the year, Tyson rented the condo for 100 days, receiving $25,000 of gross income. He personally
used the condo for 60 days. Assume Tyson uses the Tax Court method of allocating expenses to rental use
of the property. Tyson itemizes deductions, and the sum of his itemized deduction for non-home business
taxes and the real property taxes allocated to rental use of the home is less than $10,000. What is Tyson's
net rental income for the year (assume this is not a leap year)?
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