nik.2answer must be in table format or i will give down vote Alicia and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (six weeks) at $975 per weekand used it for personal use for 58 days. The total costs of maintaining the home are as follows:Mortgage interestProperty taxesInsuranceUtilitiesRepairsDepreciationRequired:$ 4,5408701,4553,4551,9855,840a. What is the proper tax treatment of this information on their tax return using the Tax Court method?Note: Use 365 days in a year. Round your intermediate computations to 5 decimal places and final answers to nearest wholedollar value.Schedule EIncomeMortgage interest$5,850Schedule A0$Property taxesInsuranceUtilitiesEA36565$4,540870+$611$1,450Repairs$8350Depreciation$SA2,4570Net income$(1,776)

TotalBusinessPersonal Schedule ESchedule APARTICULARS CalculationAmountCalculationAmount Income…

Answered: Alicia and Marie own a vacation home at…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 54P

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Sally owns a rental house. Her house income is 1000 a month. The expenses for the year are as follows: mortgage interest 3600, property tax is 1545, property manager is 1200, insurance 400, cleaning and maintenance 600 repairs 55 and depreciation 2000. What is Sally's net income loss from the rental property?
In the current year, Sandra rented her vacation home for 75 days, used it for personal use for 22 days, and left it vacant for the remainder of the year. Her income and expenses before allocation are as follows: Rental income 11,400 Real estate taxes 1,200 Utilities 1,350 Mortgage interest 3,200 Depreciation 6,000 Repairs and maintenance 810 equired: What is Sandra’s net income or loss from the rental of her vacation home? Use the Tax Court method. Note: Round your intermediate computations to 5 decimal places and final answers to nearest whole dollar value.
Amy financed the purchase of her living room suite over two years. Her monthly payments are $231.02 and she is charged an interest rate of 19.6% compounded semiannually. What was the purchase price of Amy’s furniture? ____________ b. How much is the cost of financing? _____________
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Margo and Bill file as MFJ. During the year, they paid the following: $6,500 Mortgage interest on main home (acquisition mortgage of $400,000) Credit card interest Auto loan interest Loan interest on an empty lot purchase to build a second home $ 400 $3,500 $2,500 What amount can they report as deductible mortgage interest? Answer:
The Perrys bought a $241,000 townhome. They made a down payment of $42,000 and took out a mortgage for the rest. Over the course of 30 years they made monthly payments of $1193.12 on their mortgage until it was paid off. (a) What was the total amount they ended up paying for the townhome (including the down payment and monthly payments)? $0 (b) How much interest did they pay on the mortgage? S L [2]
During the year, Rita rented her vacation home for twelve days for $2,400 and she used it personally for three months. The following expenses were incurred on the home: Property taxes $ 2, 200 Mortgage interest 10, 800 Utilities and maintenance 1,900 Depreciation 5, 000 Insurance 900 Calculate the gross income recognized from the rental property a. $0 b. $780 c. $1,300 d. $2,400
6. In the current year, Clara rented her apartment on AirBnb for 13 days. She received gross rental income of $3,100. Her expenses for the apartment are: - Operating expenses $4,000 - Depreciation $2,000 - Mortgage interest and Property taxes $4,000 - Utilities/repairs $2,000 Calculate the income and expenses reported for the rental activity. What will Clara report on her tax return for this rental activity? $3,100 income, $3,100 expenses $3,100 income, $0 expenses Clara will not report anything. $3,100 income; $12,000 expenses
During the year (not a leap year), Anna rented her vacation home for 30 days, used it personally for 20 days, and left it vacant for 315 days. She had the following income and expenses: Rent income Expenses Real estate taxes Interest on mortgage Utilities Repairs Roof replacement (a capital expenditure) Depreciation $ 7,000 IF 2,500 9,000 2,400 1,000 12,000 7,500 a. Compute Anna's net rent income or loss and the amounts she can itemize on her tax return, using the court's approach to allocating property taxes and interest. b. How would your answer in part (a) differ using the IRS's method of allocating property taxes and interest?
Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00% Cost of home Down payment Term of mortgage Rate of interest $560,000.00 60,000 25 6.38% Required: Please use the above information and the provided Amortization Chart to answer the below questions: Note: Use cells A4 to 87 from the given information to complete this question. 1. What is the principal (loan)? 2. How many total payments on this mortgage? 3. How much is their monthly payment? 4. How much of the first monthly payment is going towards interest? 5. How much of the first monthly payment is going towards principal? 6. After the first payment, what would be the balance of the principal? $500,000.00 300
Janet owns a home at the lake. She incurs the following expenses: Mortgage interest Property taxes Insurance Utilities $ 1,700 1,000 1,800 Repairs Depreciation Required: 2,100 400 4,400 What is the proper treatment of the rental income and expenses in each of the following cases? Use the Tax Court allocation method, if applicable. Note: Round your intermediate computations to 5 decimal places and final answers to nearest whole dollar value. Rental Personal-Use Days Case Income Days Rented A $ 10,000 45 10 B 13,000 55 25 CD 7,000 10 30 D 23,000 365 0 Income Mortgage interest Property taxes Insurance Utilities Repairs Depreciation Rental income Case A Case B Case C Case D Schedule E Schedule A/No Deduction Schedule E Schedule A/No Deduction Schedule E
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