In 2014 Adams, an individual, changed residences and converted her former residence into a passive...
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Accounting
In 2014 Adams, an individual, changed residences and converted her former residence into a passive rental activity. In 2014 Adams lived in the former residence for 60 days, incurred $7,000 in qualifying expenses preparing the property for rental, and rented it to a tenant for 90 days, receiving $3,000 in rent. Before considering the rental activity, Adams's adjusted gross income for 2014 is $120,000. After considering the rental activity, what should Adams's 2014 adjusted gross income be?
The answer is 120,000. Can anyone explain why?
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