During the year (not a leap year), Anna rented her vacation home for 87 days, us

Question

During the year (not a leap year), Anna rented her vacation home for 87 days, used it personally for 13 days, and left it vacant for 265 days. She had the following income and expenses:

If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Assume 365 days in a year.

a.   Is her vacation home classified as rental property?

b.   Compute the following regarding the rental use of the property:

c.   Anna has a of $ this year.

d.   What amount of the real estate taxes can Anna deduct as an itemized deduction?
$

e.   What amount of the mortgage interest can Anna deduct as an itemized deduction?
$

Check My Work

Rent income $7,000 Expenses Real estate taxes 2,500 Interest on mortgage 9,000 Utilities 2,400 Repairs 1,000 Roof replacement (a capital expenditure) 12,000 Depreciation 7,500

Explanation / Answer

Answer:-

a.   Is her vacation home classified as rental property?
Ans:- Yes

b.   Compute the following regarding the rental use of the property

c.   Anna has a of $ this year.

Answer:- Anna has Net rental loss of $12,488 this year

($7,000-$19,488)

d.   What amount of the real estate taxes can Anna deduct as an itemized deduction?

Answer:- $325

e.   What amount of the mortgage interest can Anna deduct as an itemized deduction?

Answer:- $ 0.

Gross Income $ 7000 Total Expenses $19,488

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