Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 4, Problem 9P
To determine
Introduction: The net rental income is taxable, generally, rental income is reported with related expenses on Part I of Schedule E. Any service provided to tenants such as cleaning or maid services are subjected to self-employment tax and reported in Schedule C.
The net rental income for the year assuming the house is rented for full 12 months.
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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.
earnest saguenza owns a rental house. the tenant paid him a $500 security deposit ( nto forfeited at year-end) when he moved into the house in february. the tenant paid a total of $4,000 for rent during the year. In addition, the tenant paid the $ 400 insurance premium for the year for the house. How much rental income does earnest have from the rental house?
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Dillon rented out his home for 9 days during the year for $6,400. He resided in the home for the remainder of the year. Expenses
associated with use of the home for the entire year were as follows:
$ 3,150
Real property taxes
Mortgage interest
12,375
Repairs
1,375
Insurance
1,570
Utilities
5,280
Depreciation
12,800
Dillon's AGI is $134,436 before considering the effect of the rental activity. His AGI after considering the tax effect of the rental use of
his home is $
Chapter 4 Solutions
Income Tax Fundamentals 2020
Ch. 4 - All of the following assets are capital assets,...Ch. 4 - Which of the following is a capital asset? Account...Ch. 4 - Yasmeen purchases stock on January 30,2018 . If...Ch. 4 - Vijay sells land and receives $5,000 cash, a...Ch. 4 - Prob. 5MCQCh. 4 - In 2019, what is the top tax rate for individual...Ch. 4 - In November 2019, Ben and Betty (married, filing...Ch. 4 - Prob. 8MCQCh. 4 - In 2019, Tim, a single taxpayer, has ordinary...Ch. 4 - Prob. 10MCQ
Ch. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Kevin purchased a house 20 years ago for $100,000...Ch. 4 - Gene, a single taxpayer, purchased a house 18...Ch. 4 - Prob. 15MCQCh. 4 - John owns a second home in Palm Springs, CA....Ch. 4 - Helen, a single taxpayer, has modified adjusted...Ch. 4 - Prob. 18MCQCh. 4 - Prob. 19MCQCh. 4 - Prob. 20MCQCh. 4 - Prob. 21MCQCh. 4 - Prob. 22MCQCh. 4 - Prob. 23MCQCh. 4 - Prob. 24MCQCh. 4 - Jim has a net operating loss in 2019. If he does...Ch. 4 - Prob. 26MCQCh. 4 - Prob. 27MCQCh. 4 - In 2019, Tracy generates a $10,000 loss from an...Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - In 2019, Michael has net short-term capital losses...Ch. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Walter, a single taxpayer, purchased a limited...Ch. 4 - Tyler, a single taxpayer, generates a net...Ch. 4 - Julie, a single taxpayer, has completed her 2019...Ch. 4 - Prob. 15P
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