Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs th

Question

Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

Insurance                                                      $1,000

Advertising expense                                          500

Mortgage interest                                            3,400

Property taxes                                                 1,500

Repairs & maintenance                                  650

Utilities                                                                  950

Depreciation                                                       8,500

During the year, Natalie rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Assume Natalie uses the IRS method of allocating expenses to rental use of the property. What is the total amount of itemized deductions for mortgage interest and real estate taxes related to the condo?

Explanation / Answer

Deductions related to the Condo Mortgage Interest 1081.81 [35 / (35 + 75) * 3400] Real estate taxes 477.27 [35 / (35 + 75) * 1500] Total Deduction 1559.08

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.