FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Hank was transferred from Phoenix to North Dakota on March 1 of the current year. He immediately put his home in Phoenix up for rent. The home was rented May 1 to November 30 and was vacant during the month of December. It was rented again on January 1 for six months. What expenses, if any, can Hank deduct on his return? Which deductions are for AGI, and which ones are from AGI?
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Hank is eligible to deduct mortgage interest and property taxes as an itemised deduction from January 1 through March 1.
The home was his personal residence from January 1 to March 1, and from March 1 to December 31 (the remainder of the year), he is able to write off mortgage interest, property taxes, depreciation costs, and any other costs for AGI as a rental expense.
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