Question

Insurance	$	3,300
Mortgage interest		6,750
Property taxes		4,250
Repairs and maintenance		640
Utilities		4,200
Depreciation		20,400

During the year, Alexa rented out the condo for 180 days. 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 there are 365 days in the year.

Assume that in addition to renting the condo for 180 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $40,250 of gross rental receipts. Answer the following questions: (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

b. What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days.

Answer 1