Alexa owns a condominium near Cocoa Beach in Florida In
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 22CE
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Question
2.
Transcribed Image Text:Alexa owns a condominium near Cocoa Beach In Florida. In 2022, she Incurs the following expenses in connection with her condo:
$ 2,000
6,500
2,000
1,400
2,500
14,500
Insurance
Mortgage interest
Property taxes
Repairs & maintenance
Utilities
Depreciation
During the year, Alexa rented out the condo for 100 days. Alexa's AGI from all sources other than the rental property is $200,000.
Unless otherwise specified, Alexa has no sources of passive Income.
Assume that in addition to renting the condo for 100 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa
receives $30,000 of gross rental receipts, her itemized deductions exceed the standard deduction before considering expenses
associated with the condo, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real
property taxes allocated to rental use of the home. Answer the following questions:
Required:
a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses
the IRS method of allocating expenses between rental and personal days.
Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.
b. What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses
the IRS method of allocating expenses between rental and personal days.
Note: Do not round Intermediate calculations. Round your final answer to the nearest whole dollar amount.
c. Would Alexa be better or worse off after taxes in the current year if she uses the Tax Court method of allocating expenses?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required A
Required B Required C
What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she
uses the IRS method of allocating expenses between rental and personal days.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
For AGI deductions
< Required A
Required B >
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