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 butt end taxes 2,000 Repairs & sustainment 1,400 Utilities 2,500 dispraise 14,500 During the year, Alexa rented out the condo for 100 days. She did non uptake the condo at entirely for personalised purposes during the year. Alexas AGI from wholly sources different than the term of a contract property is $200,000. Unless differently 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 resultant does the term of a contract activity train 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 term of a contract synthetic thinkings 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 regard as to the property. Since Alexa is making all the deci sions with respect to the property, at a lo! wer place the real terra firma exception, she is considered an active owner for a rental property. Active thespian 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 bay window 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, drift it on our website: OrderCustomPaper.com

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