During 2014, Chloe incurred the following costs associated with her beachfront c

Question

During 2014, Chloe incurred the following costs associated with her beachfront condominium in Ocean City: Insurance $ 500 Repairs & maintenance 700 Mortgage interest 3,000 Property taxes 1,000 Utilities 800 Chloe could also have deducted a total of $8,000 in depreciation if the property had been acquired and used only for investment purposes. However, during the year, Chloe used the condominium 20 days for a much needed vacation. She rented it out for 60 days during the year, which resulted in total gross income of $9,000.

Assume all of the same facts as above, except that Chloe rents her condominium a total of 14 days in 2016. How would she report her income and deductions from the property?

Explanation / Answer

Chloe could also have deducted a total of $8,000 in depreciation if the property had been
acquired and used only for investment purposes. However, during the year, Chloe
used the condominium 20 days for a much needed vacation. She rented it out for
60 days during the year, which resulted in total gross income of $9,000.

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