Question

spusion is the result of foreclosure The rental part of the property was separate from the part used personally The taxpayer rented an extra bedroom within the residence Mark for follow up Question 38 of 75. Glenn has a rental house that was rented beginning January 1 in the current tax year. On January 1, the tenant paid Glenn a $1.200 security deposit plus 595 timely paid the $950 monthly rent each of the remaining eleven months. How much rental income will Glenn report for the current year? $11.400 $12,350 $12,600 $13,550 Mark for follow up Question 39 of 75. Eldridge owns a rental house, which he rents at 5200 Simian houses in the neighborhood rent for $600 per month. As Eldridge's Tax Professional The income is reported, and all expenses deducted ched E The income is not reported because Eldridge is operating the property as a charity The income is reported on the Other Income section on Fom , and rental expenses up to the amount of income are deducted on schedule A charitable contribution of $400 is reported on Schedule A for every month Eldridge rents the property at $200 Mark for follow up Kaspersky Internet Secu Applications Question 40 of 75. non sold residential rental property he had owned for three years. As part of this sale. Leon realized gain on the sale of me . $1231 en

Answer 1

38)Ans :

If Glenn is a Cash Basis Tax Payer

Rental Income of 12 Month received in Current year ( $950*12)=$11400

Add: Rent Received in Jan for Last Month =$950

Total Rental Income for Current Year will be :$12350

If Glenn is a Accrual Basis Tax Payer

Rental Income of 12 Month received in Current year ( $950*12)=$11400

Total Rental Income for Current Year will be :$11400

$1200 received on account of security deposit will not be treated as rental income

39) Ans :- Option 3) The income is reported on Form 1040, line 21, and rental expenses, up to the amount of income, are deducted on Schedule A.

Explanation:

When ever property is rented on discounted rate , it will not be considered a business for profit. It will be considered as a hobby. So All related expenses can be deducted up to the income