activity have on her AGI for this year? - increased by, decreased by, or no effect?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 46P
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What does the rental activity have on her AGI for this year? - increased by, decreased by, or no effect?
Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in
connection with her condo:
$ 2,250
6,875
Insurance
Mortgage interest
Property taxes
Repairs & maintenance
Utilities
2,200
1,525
3,000
15,125
Depreciation
During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes
during the year. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise
specified, Alexa has no sources of passive income.
Assuming Alexa receives $21,000 in gross rental receipts, answer the following questions: (Leave no answer
blank. Enter zero if applicable.)
a. What effect does the rental activity have on her AGI for the year?
AGI
no effect
24
Transcribed Image Text:Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: $ 2,250 6,875 Insurance Mortgage interest Property taxes Repairs & maintenance Utilities 2,200 1,525 3,000 15,125 Depreciation During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assuming Alexa receives $21,000 in gross rental receipts, answer the following questions: (Leave no answer blank. Enter zero if applicable.) a. What effect does the rental activity have on her AGI for the year? AGI no effect 24
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