Acc547 W4

Use the following facts to state problems 6062. Alexa owns a condo near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance $2,000 Mortgage interest 6,500 loafer taxes 2,000 Repairs & criminal maintenance 1,400 Utilities 2,500 dispraise 14,500 During the year, Alexa rented out the condo for 100 days. She did non office the condo at entirely for personalized purposes during the year. Alexas AGI from completely sources different than the term of a contract property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. 61. (LO4) Assuming Alexa receives $20,000 in gross lease receipts, answer the following questions: a. What assemble does the letting activity feel on her AGI for the year?

Since Alexa did not use the property for personal student residence and he rented it for more than 100 days, the letting inferences be all deducted for AGI as below: Gross rental receipt: $20,000 less(prenominal): Insurance ($2,000) Mortgage interest ($6,500) Property taxes ($2,000) Repairs & maintenance ($1,400) Utilities ($2,500) Depreciation ($14,500) Net rental receipt: ($8,900) AGI: $200,000- $8,900 = $191,100 b. Assuming that Alexas AGI from other sources is $90,000, what effect does the rental activity have on Alexas AGI? Alexa makes all decisions with approve to the property. Since Alexa is making all the decisions with res pect to the property, at a lower place the ! real landed estate exception, she is considered an active owner for a rental property. Active player in the rental activity are allowed to deduct up to $25,000 of rental loss from their personal income. Since Alexas AGI is less than $100,000, she ordure deduct the whole amount of $8,900 as an ordinary deduction from her current year income. $90,000 - $8,900 = $81,100 c. Assuming that Alexas AGI from other sources is $120,000, what effect does the rental activity...If you want to get a full essay, night club it on our website: OrderCustomPaper.com

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