Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following...

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Accounting

Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo:

Insurance $ 650
Advertising expense 950
Mortgage interest 5,200
Property taxes 1,190
Repairs & maintenance 1,030
Utilities 1,000
Depreciation 10,700

During the year, Natalie rented out the condo for 97 days, receiving $34,500 of gross income. She personally used the condo for 57 days during her vacation. Natalie'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 atalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year.

a. What is the total amount of for AGI (rental) deductions Natalie 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 Natalie may deduct in the current year related to the condo?

c. If Natalies basis in the condo at the beginning of the year was $187,000, what is her basis in the condo at the end of the year?

d. Assume that gross rental revenue was $4,000 (rather than $34,500). What amount of for AGI deductions may Natalie deduct in the current year related to the condo?

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