Acc547 W4

Use the following facts to state problems 6062. Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance $2,000 Mortgage interest 6,500 female genital organ taxes 2,000 Repairs & concern 1,400 Utilities 2,500 dispraise 14,500 During the year, Alexa rented out the condo for 100 days. She did non routine the condo at entirely for personalised purposes during the year. Alexas AGI from totally 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 set does the rental activity establish 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 rental subtractions be all deducted for AGI as below: Gross rental r eceipt: $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 attentiveness to the property. Since Alexa is making all the decisions with respect to the property, at a lower place the real the three estates exception, she is considered an active owner for a rental property. Active participant 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 cornerstone deduct the whole amount of $8,900 as an ordina ry 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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