Dillon rented his personal residence at Lake Tahoe for 14 days
while he was vacationing in Ireland. He resided in the home for the
remainder of the year. Rental income from the property was $6,300.
Expenses associated with use of the home for the entire year were
as follows:
Real property taxes | $ | 3,100 |
Mortgage interest | 12,250 | |
Repairs | 1,350 | |
Insurance | 1,540 | |
Utilities | 5,160 | |
Depreciation | 12,600 | |
a. What effect does the rental have on Dillon’s AGI?
b. What are Dillon’s itemizable real property taxes and itemizable mortgage interest (assuming he itemizes deductions before considering deductions associated with the home)?
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