Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Kelvin owns and lives in a duplex. He rents the other unit for $680 per month. H

ID: 2496576 • Letter: K

Question

Kelvin owns and lives in a duplex. He rents the other unit for $680 per month. He incurs the following expenses during the current year for the entire property:


  Mortgage interest $7,150
  Property taxes 1,720
  Utilities 1,180
  Fixed light fixture in rental unit 65
  Fixed dishwasher in personal unit 180
  Painted entire exterior 890
  Insurance 1,300
Depreciation (entire structure) 5,800

How are the above income and expenses reported on Kelvin’s tax return? On what tax form(s) are these amounts reported?

Explanation / Answer

Kelvin owns and lives in a duplex. He rents the other unit for $680 per month. H