7. Mario, who is single and elects to itemize, rents his mountain house for 210 days and uses it for personal use for 25 days during the year, not a leap year. Income and expenses associated with the property are: Rental income Mortgage interest payments Property tax payments Depreciation Utility payments Maintenance payments $ 24,000 12,000 8,000 7,000 5,000 4,000 If Mario is allowed a choice, Mario would choose to use the court approach to allocating mortgage interest and property taxes. Determine the amount of expense that Mario would deduct from AGI on his current year tax return associated with the mountain house. Hint: Determine the correct classification of the mountain house.
7. Mario, who is single and elects to itemize, rents his mountain house for 210 days and uses it for personal use for 25 days during the year, not a leap year. Income and expenses associated with the property are: Rental income Mortgage interest payments Property tax payments Depreciation Utility payments Maintenance payments $ 24,000 12,000 8,000 7,000 5,000 4,000 If Mario is allowed a choice, Mario would choose to use the court approach to allocating mortgage interest and property taxes. Determine the amount of expense that Mario would deduct from AGI on his current year tax return associated with the mountain house. Hint: Determine the correct classification of the mountain house.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 55P
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Transcribed Image Text:7. Mario, who is single and elects to itemize, rents his mountain house for 210 days and uses it for personal
use for 25 days during the year, not a leap year. Income and expenses associated with the property are:
Rental income
Mortgage interest payments
Property tax payments
Depreciation
Utility payments
Maintenance payments
$ 24,000
12,000
8,000
7,000
5,000
4,000
If Mario is allowed a choice, Mario would choose to use the court approach to allocating mortgage interest
and property taxes. Determine the amount of expense that Mario would deduct from AGI on his current year
tax return associated with the mountain house. Hint: Determine the correct classification of the mountain
house.
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