Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:
- Insurance $1,410
- Advertising expense $590
- Mortgage interest $6,100
- Property taxes $1,490
- Repairs & maintenance $630
- Utilities $520
- Depreciation $10,000
During the year, Natalie rented out the condo for 95 days, receiving $18,000 of gross income. She personally used the condo for 42 days during her vacation.
Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property.
A. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo?For AGI deductions $
B. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?Itemized deductions $
C. If Natalie's basis in the condo at the beginning of the year was $243,000, what is her basis in the condo at the end of the year?
Basis $
D. Assume that gross rental revenue was $1,800 (rather than $18,000), what amount of for AGI deductions may Natalie deduct in the current year related to the condo?For AGI deductions $