Piper owns a vacation cabin in the Tennessee mountains. Without considering the cabin, she has a gross income of $65,000. During the year, she rents the cabin for two weeks for $2,500 and uses it herself for four weeks. The total expenses for the year are $10,000 mortgage interest; $1,500 property tax; $2,000 utilities, insurance, and maintenance; and $3,200 depreciation. If an amount is zero, enter "0".
a. What effect does the rental of the vacation cabin have on Sarah's AGI?
b. What expenses can Sarah deduct, and how are they classified (i.e., for or from AGI)?

Question

14-02-2020
Business

contestada

Piper owns a vacation cabin in the Tennessee mountains. Without considering the cabin, she has a gross income of $65,000. During the year, she rents the cabin for two weeks for $2,500 and uses it herself for four weeks. The total expenses for the year are $10,000 mortgage interest; $1,500 property tax; $2,000 utilities, insurance, and maintenance; and $3,200 depreciation. If an amount is zero, enter "0".
a. What effect does the rental of the vacation cabin have on Sarah's AGI?
b. What expenses can Sarah deduct, and how are they classified (i.e., for or from AGI)?

Respuesta :

Otras preguntas

You and your family are planning a vacation to Orlando Florida! Your family has a budget of $5,500. You will be traveling by car. Orlando Florida is 1,950 mile

In fighting the Civil War, Lincoln as President, relied heavily on the broad and expanding use of a. executive powers b. cabinets advisor c. army authority d.

Many people place bat boxes on their property to provide housing that attracts insect -eating bats. Explain how this activity has a positive effect on the envir

In Julius Caesar, what is the significance of the date that Lucius (Brutus’ servant) reports to brutus?

The era where many plants, animals, diseases, and people were exchanged between the Old World and New World was called the Exchange. European Cortez Columbian

How does Luis’s mother’s death influence his behavior and emotions in different ways in the story?

2 PointsThe Supreme Court serves what important function in the U.S. federalgovernment?A. It determines whether cases should be reviewed in the federal orstate

Letter from Birmingham Jail, composed by Martin Luther King, Jr. from his cell in the Birmingham Jail Cell, is a seminal document that established the moral fou

Please help!!! a boat measures 40m long and 10m wide. a scale model of the boat measures 50cm long. what is the scale factor of the model?

4. Which of the following is a proper fraction? A.73 B.56. C.% D.42

jepessoa jepessoa · Answer 1 · 2020-02-18T03:42:25+01:00

Answer:

A) Piper or Sarah's income is not affected by her rent income since the cabin was only rented for 14 days and she also used the cabin for personal purposes for more than 14 days.

B) She can deduct mortgage interest ($10,000) and property tax ($1,500), she cannot deduct any other expenses because she is not engaging in any real estate rental activity. These expenses (mortgage interest and property tax) are expenses that anyone can normally deduct from their AGI.