Tin rents her beach house for 60 days and uses it for personal use for 30 days during the year. The rental income is $6,000 and the expenses are as follows: Mortgage interest $9,000 Real estate taxes 3,000 Utilities 2,000 Maintenance 1,000 Insurance 500 Depreciation (rental part) 4,000 Using the IRS approach, total expenses that Tin can deduct on her tax return associated with the beach house are: a.$6,000. b.$0. c.$8,000. d.$12,000
Tin rents her beach house for 60 days and uses it for personal use for 30 days during the year. The rental income is $6,000 and the expenses are as follows: Mortgage interest $9,000 Real estate taxes 3,000 Utilities 2,000 Maintenance 1,000 Insurance 500 Depreciation (rental part) 4,000 Using the IRS approach, total expenses that Tin can deduct on her tax return associated with the beach house are: a.$6,000. b.$0. c.$8,000. d.$12,000
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 54P
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Question
Tin rents her beach house for 60 days and uses it for personal use for 30 days during the year. The rental income is $6,000 and the expenses are as follows:
Using the IRS approach, total expenses that Tin can deduct on her tax return associated with the beach house are:
Mortgage interest | $9,000 |
Real estate taxes | 3,000 |
Utilities | 2,000 |
Maintenance | 1,000 |
Insurance | 500 |
Depreciation (rental part) | 4,000 |
Using the IRS approach, total expenses that Tin can deduct on her tax return associated with the beach house are:
a.$6,000.
b.$0.
c.$8,000.
d.$12,000.
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