Manuela began renting her entire main home at fair rental value on May 1, 2008. When she converted the house to rental property, the adjusted basis was $205,000, which included $18,000 of value attributable to the land. The fair market value at the time of conversion was $195,000, including land value of $10,000. In 2019, Manuela received $19,200 in rental income from the property. Her expenses for the year included: yard maintenance, $480; repairs, $850; property insurance, $2,520; mortgage interest $8,960; real estate tax, $2,750. What is Manuela's loss on the rental property? a.($3,861) b.($3,766) c.($3,693) d.($3,088)
Manuela began renting her entire main home at fair rental value on May 1, 2008. When she converted the house to rental property, the adjusted basis was $205,000, which included $18,000 of value attributable to the land. The fair market value at the time of conversion was $195,000, including land value of $10,000. In 2019, Manuela received $19,200 in rental income from the property. Her expenses for the year included: yard maintenance, $480; repairs, $850; property insurance, $2,520; mortgage interest $8,960; real estate tax, $2,750. What is Manuela's loss on the rental property? a.($3,861) b.($3,766) c.($3,693) d.($3,088)
Chapter4: Additional Income And The Qualified Business Income Deduction
Section: Chapter Questions
Problem 16MCQ: John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56...
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Manuela began renting her entire main home at fair rental value on May 1, 2008. When she converted the house to rental property, the adjusted basis was $205,000, which included $18,000 of value attributable to the land. The fair market value at the time of conversion was $195,000, including land value of $10,000. In 2019, Manuela received $19,200 in rental income from the property. Her expenses for the year included: yard maintenance, $480; repairs, $850; property insurance, $2,520; mortgage interest $8,960; real estate tax, $2,750. What is Manuela's loss on the rental property?
a.($3,861)
b.($3,766)
c.($3,693)
d.($3,088)
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