Alexa owns à condominium near Coc
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 55P
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Question
Domestic
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
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