Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 1,120 560 3,920 954 710 1,010 9,700 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.
Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 1,120 560 3,920 954 710 1,010 9,700 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.
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 41P
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Step 1: IRS method of allocating expenses:
VIEWStep 2: (a) Determine the total amount of for AGI (rental) deductions T may deduct in the current year:
VIEWStep 3: (b) Determine the total amount of itemized deductions T may deduct in the current year:
VIEWStep 4: (c) Determine T’s basis assuming the basis at the beginning of the year was $150,000:
VIEWStep 5: (d) Determine AGI deductions that may T will deduct in the current year related to the C:
VIEWStep 6: (e) Determine AGI deductions that may T will deduct in the current year related to the C:
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ISBN:
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Author:
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Publisher:
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