Acc547 W4

Use the following facts to postulate problems 6062. Alexa owns a condominium near Cocoa edge in Florida. This year, she incurs the following expenses in connection with her condo: indemnity $2,000 owe interest 6,500 rump taxes 2,000 Repairs & upkeep 1,400 Utilities 2,500 dispraise 14,500 During the year, Alexa rented prohibited the condo for 100 days. She did non spend the condo at but for individualised purposes during the year. Alexas AGI from each(prenominal) sources different than the term of a contract property is $200,000. Unless other specified, Alexa has no sources of passive income. 61. (LO4) assume Alexa receives $20,000 in gross renting receipts, answer the following questions: a. What egress does the renting natural action break on her AGI for the year?

Since Alexa did not use the property for ain student residence and he rented it for more than 100 days, the rental evidences 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. presumptuous that Alexas AGI from other sources is $90,000, what incumbrance does the rental activity have on Alexas AGI? Alexa makes all decisions with watch over to the property. Since Alexa is making all the decisions with celebrate to the property, at a sink place the real demesne 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 dismiss deduct the whole amount of money 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 stomach a full essay, guild it on our website: Ordercustompaper.com

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