Charles and sarah own a home in palm springs, ca. during the year, they rented the house for 40 days for $5,000 and used it for personal use for 18 days. the house remained vacant for the remainder of the year. the expenses for the house included $16,000 in mortgage interest, $4,500 in property taxes, $1,000 in utilities, $1,200 in maintenance, and $9,800 in depreciation. what is the deductible loss for the rental of their home (without considering the passive loss limitation)? use the tax court method for allocation of expenses.

a.$0
b. $5,000 net income
c. $17,414 net loss
d. $27,500 net loss

Option (c) is correct.

Explanation:

Total expenses:

= mortgage interest + property tax + utilities and maintenance + Depreciation expense

= $16,000 + $4,500 + ($1,000 + $1,200) + $9,800

= $32,500

Proportionate rental expenses = $32,500 × 40 days ÷ (40 days + 18 days)

                                                    = $22,414

Rental Loss = Rental income - Proportionate rental expenses

                    = $5,000 - $22,414

                    = -$17,414

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.