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Business, 27.05.2020 19:06 anonwarrior

During the year, Anna rented her vacation home for 87 days, used it personally for 13 days, and left it vacant for 265 days. She had the following income and expenses: Rent income $7,000 Expenses Real estate taxes 2,500 Interest on mortgage 9,000 Utilities 2,400 Repairs 1,000 Roof replacement (a capital expenditure) 12,000 Depreciation 7,500 If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Assume 365 days in a year. a. Is her vacation home classified as rental property? Yes b. Compute the following regarding the rental use of the property: Gross income: $ 7,000 Total expenses: $ 19,488 c. Anna has a net rental loss of $ 12,488 this year. d. What amount of the real estate taxes can Anna deduct as an itemized deduction? $ 4,600 e. What amount of the mortgage interest can Anna deduct as an itemized deduction?

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