Simon rents his cottage when he and his family are not using it. It qualifies as a vacation home rental. In 2021, he had rental income of $5,200. His deductible expenses were: Advertising $350 Commissions $775 Depreciation (rental portion) $1,500 Maintenance (rental portion) $750 Mortgage interest (rental portion) $1,250 Pest control (rental portion) $300 Prior-year carryover $500
Simon rents his cottage when he and his family are not using it. It qualifies as a vacation home rental. In 2021, he had rental income of $5,200. His deductible expenses were: Advertising $350 Commissions $775 Depreciation (rental portion) $1,500 Maintenance (rental portion) $750 Mortgage interest (rental portion) $1,250 Pest control (rental portion) $300 Prior-year carryover $500
Chapter5: Deductions For And From Agi
Section: Chapter Questions
Problem 26MCQ
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Question
Simon rents his cottage when he and his family are not using it. It qualifies as a vacation home rental. In 2021, he had rental income of $5,200. His deductible expenses were:
Advertising $350
Commissions $775
Depreciation (rental portion) $1,500
Maintenance (rental portion) $750
Mortgage interest (rental portion) $1,250
Pest control (rental portion) $300
Prior-year carryover $500
Real estate tax $800
What amount of unallowed expense will Simon carry forward to next year?
$0
$500
$1,025
$1,500
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