Use the following information to answer the "fill in the blanks" question:Jimmy Fallon acquired 3 rental properties in 2020 as follows:Building$40,00042,00070,000LandProperty 1Property 2Property 3$10,00012,00030,000Total$ 50,00054,000100,000In 2020, the rent revenue before expenses for all three properties was $42,000. The expenses, notincluding CCA, for all three properties were $32,000 (property taxes, insurance, interest andmaintenance).What is the minimum amount of net rental income to be reported in 2020?AWhat is the UCC balance for each class of rental properties at December 31, 2020?AWhat is the maximum amount of CCA that can be deducted in 2020 if the net rental incomebefore CCA was $7,000?

Rental Income can be defined as the form of income or revenue generated from providing the fixed…

What is the minimum amount of net rental income to be reported in 2020? What is the UCC balance for each class of rental properties at December 31, 2020? What is the maximum amount of CCA that can be deducted in 2020 if the net rental income before CCA was $7,000?

What is the minimum amount of net rental income to be reported in 2020? What is the UCC balance for each class of rental properties at December 31, 2020? What is the maximum amount of CCA that can be deducted in 2020 if the net rental income before CCA was $7,000?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 15MCQ

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