Acc/547 Problem 61

Chap 14, Problem 61 Alexa owns a condominiumminium near sibylline brown Beach in Florida. This social class, she incurs the pursual write offs in connection with her condo: redress| $2,000| Mortgage interest| 6,500| billet taxes| 2,000| Repairs & livelihood| 1,400| Utilities| 2,500| depreciation| 14,500| During the social class, Alexa rented out the condo for 100 days. She did not fight back the condo at just for personal purposes during the socio-economic class. Alexas AGI from fellate ensemble sources opposite(a) than the letting spot is $200,000. Unless otherwise specified, Alexa has no sources of still income assume Alexa receives $20,000 in perfect(a) rental receipts, answer the pastime questions: 1. What launch does the rental natural action have on her AGI for the family? The rental act does not have any consequence on the AGI. As the condo has significant rental habit and no personal use up at on the whole, all put down should be allocated to the rental use. In Alexas situation, all expenses incurred in this year is 28,900 while the inactive income is altogether 20,000. Since we are not incontestible if Alex qualifies as an active thespian at this point, none of the hands-off loss can be deducted again the passive income. 2.

presumptuous that Alexas AGI from other sources is $90,000, what effect does the rental activity have on Alexas AGI?Alexa makes all decisions with respect to the situation. The AGI get out be reduced by 8,900. Since Alexa makes all decisions with respect to the property and owns the property, she qualifies as an active thespian and can apply the riddance to her passive loss. She can to the full deduct the 8,900 passive losings to her net income. 3. Assuming that Alexas AGI from other sources is $120,000, what effect does the rental activity have on Alexas AGI? Alexa makes all decisions with respect to the property. The AGI will be reduced by 8,900. Alexa qualifies as an active participant so she can deduct up to $25,000 of her passive loss against her income. Although Alexas...If you loss to get a secure essay, order it on our website: Ordercustompaper.com

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