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In 2013 and 2014 Andy, who is single owned a vacation home that generated both i

ID: 2448733 • Letter: I

Question

In 2013 and 2014 Andy, who is single owned a vacation home that generated both income and related expenses as listed below. Andy’s only other income is W2 wages of $276,000

YEAR

INCOME

Ad Valorem Taxes

Management fees

2013

$35,000

$9,500

$29,000

2014

$32,000

$9,500

$29,000

Andy has no other expenses that would be allowed as deductions either for or from AGI. How much of the MANGAGEMENT FESS (after all limitations) can Andy deduct in 2013? Andy

In 2013 FOR AGI______    FROM AGI__________ CARRYOVER________

YEAR

INCOME

Ad Valorem Taxes

Management fees

2013

$35,000

$9,500

$29,000

2014

$32,000

$9,500

$29,000

Explanation / Answer

Answer:

$25500 of the MANGAGEMENT FESS (after all limitations) can Andy deduct in 2013.

Andy in 2013 for agi is 35000 from AGI 25500 carryover 3500.

Particulars Amount ($) Income 35000 Less: Valorem Taxes 9500 Remaining income 25500
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