a. Compute the number of (1) days the property was rented at a fair rental price; (2) total days the property was used during the year; and (3) personal days. Discuss the significance of these three numbers as they pertain to the vacation home rules. b. Compute Dari's net rental income and any expenses that she must carry over to the next year.
a. Compute the number of (1) days the property was rented at a fair rental price; (2) total days the property was used during the year; and (3) personal days. Discuss the significance of these three numbers as they pertain to the vacation home rules. b. Compute Dari's net rental income and any expenses that she must carry over to the next year.
Chapter11: Investor Losses
Section: Chapter Questions
Problem 4CPA
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2022 tax rules
Transcribed Image Text:Rental Activities
TOU6XGT Smooni leisbet to alsitnezz3
9-25
a. Compute the number of (1) days the property was rented at a fair rental price; (2) total
days the property was used during the year; and (3) personal days. Discuss the significance
of these three numbers as they pertain to the vacation home rules.
b. Compute Dari's net rental income and any expenses that she must carry over to the next
year.
Transcribed Image Text:5. Vacation Homes. (Obj. 2) Dari owns a vacation home that she personally uses 14 days during
the year. The rest of the year the following occupants used the home. Fair rental price is $125
a night.
Occupant
Number of Days
8
21
Dari's best friend, who paid no rent
hr Dari's brother, who paid a fair rental price
Couple who won a charity auctions prin
Unrelated persons, who paid rent of $7,500
7
60
Dari's expenses related to the vacation home were as follows:
008
Mortgage interest
$ 6,700
Real estate taxes
3,300
Utilities and repairs
2,540
Depreciation
6,650
$19,190
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