Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance $ 1,380 690 4,830 1,071 840 Utilities Depreciation 1,140 12,300 During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the. condo for 35 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the IRS method of allocating expenses to rental use of the property. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo? b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo? c. If Tamar's basis in the condo at the beginning of the year was $150,000, what is her basis in the condo at the end of the year? d. Assume that gross rental revenue was $2,000 (rather than $10,000). What amount of for AGI deductions may Tamar deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with the condo)? e. Assuming that gross rental revenue was $2,000 (rather than $10,000) and that Tamar's itemized deduction for taxes is $10,000 before considering property taxes allocated to rental use of the property, what amount of for AGI deductions may Tamar deduct in the current year related to the condo? Note: For all requirements, do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Answer is not complete. a. For AGI (rental) deductions $ 15,170 x b. Itemized deductions $ 2,262 x c. Basis at the end of the year S 141,614 x d. For AGI deductions $ 15,170 e. For AGI deductions

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 55P
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Question
Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with
her condo:
Insurance
Advertising expense
Mortgage interest
Property taxes
Repairs & maintenance
$ 1,380
690
4,830
1,071
840
Utilities
Depreciation
1,140
12,300
During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the.
condo for 35 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than
the property taxes allocated to the rental use of the property.
Assume Tamar uses the IRS method of allocating expenses to rental use of the property.
Required:
a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo?
b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo?
c. If Tamar's basis in the condo at the beginning of the year was $150,000, what is her basis in the condo at the end of the year?
d. Assume that gross rental revenue was $2,000 (rather than $10,000). What amount of for AGI deductions may Tamar deduct in the
current year related to the condo (assuming she itemizes deductions before considering deductions associated with the condo)?
e. Assuming that gross rental revenue was $2,000 (rather than $10,000) and that Tamar's itemized deduction for taxes is $10,000
before considering property taxes allocated to rental use of the property, what amount of for AGI deductions may Tamar deduct in
the current year related to the condo?
Note: For all requirements, do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.
Answer is not complete.
a. For AGI (rental) deductions
$
15,170 x
b. Itemized deductions
$
2,262 x
c. Basis at the end of the year
S
141,614 x
d. For AGI deductions
$
15,170
e. For AGI deductions
Transcribed Image Text:Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance $ 1,380 690 4,830 1,071 840 Utilities Depreciation 1,140 12,300 During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the. condo for 35 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the IRS method of allocating expenses to rental use of the property. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo? b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo? c. If Tamar's basis in the condo at the beginning of the year was $150,000, what is her basis in the condo at the end of the year? d. Assume that gross rental revenue was $2,000 (rather than $10,000). What amount of for AGI deductions may Tamar deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with the condo)? e. Assuming that gross rental revenue was $2,000 (rather than $10,000) and that Tamar's itemized deduction for taxes is $10,000 before considering property taxes allocated to rental use of the property, what amount of for AGI deductions may Tamar deduct in the current year related to the condo? Note: For all requirements, do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Answer is not complete. a. For AGI (rental) deductions $ 15,170 x b. Itemized deductions $ 2,262 x c. Basis at the end of the year S 141,614 x d. For AGI deductions $ 15,170 e. For AGI deductions
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