Ginny owns a house in northern Wisconsin that she rents for $1,600 per month. Ginny does not use the property personally. While she was in Europe for Christmas, the water heater on the property failed, and her tenants repaired it for $1,200. For the following month’s rent (January), her tenants paid her $400 for rent ($1,600 − $1,200). What amounts should Ginny include for rental income and repair expense, respectively, for January?

Ginny owns a house in northern Wisconsin that she rents for $1,600 per month. Ginny does not use the property personally. While she was in Europe for Christmas, the water heater on the property failed, and her tenants repaired it for $1,200. For the following month’s rent (January), her tenants paid her $400 for rent ($1,600 − $1,200). What amounts should Ginny include for rental income and repair expense, respectively, for January?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 56P

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