Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance $ 2,000 Mortgage interest 6,500 Property taxes 2,000 Repairs & maintenance 1,400 Utilities 2,500 Depreciation 14,500 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. Assume Alexa receives $30,000 in gross rental receipts. a. What effect do the expenses associated with the property have on her AGI? b. What effect do the expenses associated with the property have on her itemized deductions?
Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in
connection with her condo:
Insurance $ 2,000
Mortgage interest 6,500
Property taxes 2,000
Repairs & maintenance 1,400
Utilities 2,500
Depreciation 14,500
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.
Assume Alexa receives $30,000 in gross rental receipts.
a. What effect do the expenses associated with the property have on her AGI?
b. What effect do the expenses associated with the property have on her itemized deductions?
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