None Problem 14-37 (LO 14-1) (Algo)Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the currentyear, Junior:Personally stayed in the home for 25 days.Rented it to his favorite brother at a discount for 19 days.Rented it to his least-favorite brother for 10 days at the full market rate.Rented it to his friend at a discounted rate for 11 days.Rented the home to third parties for 74 days at the market rate.Did repair and maintenance work on the home for 2 days.Marketed the property and made it available for rent for 154 days during the year (but did not rent it out).How many days of personal use and how many days of rental use did Junior experience on the property during the year?Days of personal useDays of rental use

Personal days and rental days.To find the number of personal use and number of days of rental use…

Answered: oblem 14-37 (LO 14-1) (Algo) everal…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 9P

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Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year Junior: Personally stayed in the home for 29 days. Rented it to his favorite brother at a discount for 35 days. Rented it to his least favorite brother for 9 days at the full market rate. Rented it to his friend at a discounted rate for 13 days. Rented the home to third parties for 75 days at the market rate. Did repair and maintenance work on the home for 2 days. Marketed the property and made it available for rent 166 days (but not actually rented out), during the year (in addition to the days mentioned above). How many days of personal use and how many days of rental use did Junior experience on the property during the year? Days of personal use Days of rental use
Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year, Junior: Personally stayed in the home for 22 days. Rented it to his favorite brother at a discount for 10 days. Rented it to his least-favorite brother for 8 days at the full market rate. Rented it to his friend at a discounted rate for 4 days. Rented the home to third parties for 58 days at the market rate. Did repair and maintenance work on the home for 2 days. Marketed the property and made it available for rent for 150 days during the year (but did not rent it out). How many days of personal use and how many days of rental use did Junior experience on the property during the year? Days of personal use: Days of rental use:
S Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the curre year, Junior: Personally stayed in the home for 14 days. • Rented it to his favorite brother at a discount for 14 days. ● • Rented it to his least-favorite brother for 17 days at the full market rate. • Rented it to his friend at a discounted rate for 9 days. • Rented the home to third parties for 79 days at the market rate. Did repair and maintenance work on the home for 2 days. • Marketed the property and made it available for rent for 221 days during the year (but did not rent it out). How many days of personal use and how many days of rental use did Junior experience on the property during the year? ● Days of personal use Days of rental use
Problem 8-35 (LO 8-2) 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 Real estate taxes Utilities Mortgage interest Depreciation Repairs and maintenance Rental income Real estate taxes Utilities Mortgage interest Repairs and maintenance Required: 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. Depreciation Net rental income 15,000 2,400 X Answer is complete but not entirely correct. Schedule E 15,000 S $ 2,250 4,400 7,300 1,170 1,160 x 781 x 411 * $ 1,005 X 5,567 X 6,076 Schedule A 1,589 X 3,019 X
Starting on July 1, 2000, Peter borrows $7,600.00$7,600.00 each year for 4 years from his dear Aunt May to pay for college. (Note: the last date that he borrows money is July 1, 2003.) From the beginning, Aunt May agreed to defer all interest on the loans until Peter finds a job; i.e. Peter's loans will not accumulate any interest until the first day he starts working. After that, Peter will be charged 8.8 percent compounded semiannually, and he will pay Aunt May back with 14 equal semiannual payments, the first coming 6 months after he starts his job. Peter finds a job as a photographer for a local newspaper, and his first day of work is July 1, 2004. For tax reasons, Peter needs to compute the total amount of interest that he will pay to Aunt May in the year 2007. How much in interest did Peter actually pay in 2007?
What kind of obligation are the following? 1.1. Rosalie agreed to pay her tuition fee in five monthly installments. 1.2. Gino promised to give Rhino a puppy husky four months from now. 1.3. Ivy is buying a pair of headlights for her car but requested that she will buy one piece at a time because her money is insufficient for both pieces. 1.4. The parents donated a farm lot to their children Josie, Jojo, and Joey. 1.5. The teacher opted for “blended” teaching where she can meet students face to face for 10 hours and give them e-learning materials for 40 hours.
Question 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. a) $32, 493 b) $8, 493 c) $851 d) $24,000 e) $2, 128
29 Leonard withdrew $10,000 from his RRSP under the Home Buyers' Plan on August 12th of last year and used the amount as a deposit on the purchase of a new house. However, he realized that he needed another $8,000 to help finance the downpayment and made a second HBP withdrawal on September 25th of last year. He will take possession of the property on April 1st of this year. On January 20th of this year, he withdrew another $7,000 under the HBP to buy some appliances. Based on his withdrawals, how much does Leonard have to include as taxable income? a) $0 b) $5,000 c) $7,000 d) $15,000
Larry purchased an annuity from an insurance company that promises to pay him $6,500 per month for the rest of his life. Larry paid $626,340 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $6,500 this month. Use the expected number of payments in Exhibit 5-1 for this problem. Problem 5-59 Part-b (Algo) b. If Larry lives more than 15 years after purchasing the annuity, how much of each additional payment should he include in gross income?
3. Ralph and Sybil own a home in Memphis, which is insured by a standard homeowners policy. They also rent a beach house in Destin on an annual basis. Rodney, their insurance agent, suggests that they consider increasing the limit on personal property at the beach house, because the standard homeowners policy provides a limit of only_of the personal property limit on their primary residence. a. 25 percent b.10 percent. c.15 percent d. 5 percent
Problem 6-46 (LO. 3) Piper owns a vacation cabin in the Tennessee mountains. Without considering the cabin, she has gross income of $65,000. During the year, she rents the cabin for two weeks for $2,500 and uses it herself for four weeks. The total expenses for the year are $10,000 mortgage interest; $1,500 property tax; $2,000 utilities, insurance, and maintenance; and $3,200 depreciation. If an amount is zero, enter "0". a. What effect does the rental of the vacation cabin have on Piper's AGI? Piper reports rental income of $fill in the blank 24e4ed0ad044019_1 and rental expenses of $fill in the blank 24e4ed0ad044019_2 for AGI. b. What expenses can Piper deduct, and how are they classified (i.e., for or from AGI)? Note: Assume that she itemizes her deductions. a. Utilities $fill in the blank b9bf8ef99f9900f_1 b. Insurance $fill in the blank b9bf8ef99f9900f_3 c. Property Taxes $fill in the blank b9bf8ef99f9900f_5 d. Mortgage interest $fill…
Larry purchased an annuity from an insurance company that promises to pay him $6,500 per month for the rest of his life. Larry paid $626,340 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $6,500 this month. Use the expected number of payments in Exhibit 5-1 for this problem. Problem 5-59 Part-a (Algo) a. How much of the first payment should Larry include in gross income?

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