Alexa owns a condo near Cocoa Beach in Flordia. This year, sheincurs the following expenses in connection with her condo:
Insurance $3,500
Mortage interest $10,800
Property Taxes $3,700
Repairs and maintance $1,150
Ulitites $2,900
Depreciation $22,000
During the year, Alexa rented out the condo for 132 days.Alexa's AGI from all sources other than the rental properrty is$200,000. Unless otherwise specifies, Alexa has no sources ofpassive income.
Assume that in addition to renting the condo for 132 days, Alexauses the condo for 8 days of personal use. Also assume that Alexareceives $44,500 of gross rental receipts and her itemizeddeductions exceed the standard deduction before consideringexpenses associated with the condo. Answer the followingquestions:
A) What is the total amount of for AGi deductions relating tothe condo that Alexa may deduct in the current year? Assume shesuses the IRS method of allocating expenses between rental andpersonal days.
Gross rental income
Expenses:
Insurace
Mortage Interest
Property Taxes
Repairs and Maintenance
Utilities
Depreciation
Total Expenses
Balance-net rental income
Total for AGI deductions
B) What is the total amount of for AGI deductions relating tothe condo that Alexa may deduct in the current year? Assume sheuses the IRS method of allocating expenses between rental andpersonal days.
