Question

Question 40 of 75. Leon sold residential rental property he had owned for three years. As part of this sale, Leon realized gain on the sale of the rental hou $1231 $1245. 0 $1250 $1254 Mark for follow up Question 41 of 75. Rosa replaced a broken heating and air conditioning unit in one of her rental houses. How will this expense be reported on schedule As a repair, deducted as a current expense As an improvement depreciated over 15 years As an improvement, depreciated over 27 1/2 years, As an improvement, depreciated over 31 12 years Mark for follow up Question 42 of 75. Every yet college basketball tournament is held in Badget's city. She rents out her condominium during the week-long tournament Professional, how do you report this income? The income and expenses are reported on Schedule E The Income is reported on Schedule E but no expenses are allowed because Bridget is not in the rental business The income is reported on the Other Income section of Forn 1040 and rental expenses, up to the amount of income are deducted on The Income is not reported because the property is her personal residence and was rented for fewer than 15 days Mark for follow up

Answer 1

41.

as she has replaced the heating,this is a improvement and not a repair because it improves the benefits for more than one year we need to capitalize the expense and so it must be depreciated

and the depreciation of capital expense in rental property is for 27.5 years

so the answer is C.