Alexa owns à condominium near Coc

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions
Section: Chapter Questions
Problem 29P
icon
Related questions
Question

Domestic 

Alexa owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with
her condo:
Insurance
Mortgage interest
Property taxes
Repairs & maintenance
Utilities
Depreciation
$ 1,800
7,400
4,350
730
2,400
18,600
During the year, Alexa rented out the condo for 127 days. Alexa's AGI from all sources other than the rental property is
$200,000. Unless otherwise specified, Alexa has no sources of passive income.
Assume that in addition to renting the condo for 127 days, Alexa uses the condo for 8 days of personal use. Also assume
that Alexa receives $50,250 of gross rental receipts, her itemized deductions exceed the standard deduction before
considering expenses associated with the condo, and her itemized deduction for non-home business taxes is less than
$10,000 by more than the real property taxes allocated to rental use of the home. Answer the following questions:
Problem 14-62 Part a (Algo)
a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses
the IRS method of allocating expenses between rental and personal days.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
For AGI deductions
Transcribed Image Text:Alexa owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 1,800 7,400 4,350 730 2,400 18,600 During the year, Alexa rented out the condo for 127 days. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 127 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $50,250 of gross rental receipts, her itemized deductions exceed the standard deduction before considering expenses associated with the condo, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the following questions: Problem 14-62 Part a (Algo) a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. For AGI deductions
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage