Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in...
Dillon rented his personal residence at Lake Tahoe for 14 days
while he was vacationing in Ireland. He resided in the home for the
remainder of the year. Rental income from the property was $5,300.
Expenses associated with use of the home for the entire year were
as follows:
| Real property taxes | $ | 2,600 |
| Mortgage interest | 11,000 | |
| Repairs | 1,100 | |
| Insurance | 1,240 | |
| Utilities | 3,960 | |
| Depreciation | 10,600 | |
a.) What effect does the rental have on Dillon’s AGI?
b.) What are Dillon’s itemizable real property taxes and itemizable mortgage interest (assuming he itemizes deductions before considering deductions associated with the home)?
Homework Answers
a) The rental has no effect on Dillon's AGI
Explanation. Gross receipts in rental income is not required to be included in AGI if the person resides in the house for minimum 15 days and rent out the house for only 14 days or less.
b) Itemized Deductions: (i) Real property taxes of $2,600 and (ii) Mortgage interest of $11,000
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Dillon rented his personal residence at Lake Tahoe for 14 days
while he was vacationing in...
Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in...
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Required information Problem 14-60 (LO 14-5) The following information applies to the questions displayed below.] Dillon...
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Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland. He resided in the home for the remainder of the year. Rental income from the property was $6,400. Expenses associated with use of the home for the entire year were as follows: $ Real property taxes Mortgage interest Repairs Insurance Utilities Depreciation 3, 150 12,375 1,375 1,570 5,280 12,800 Problem 14-57 Part b b. What are Dillon's itemizable real property taxes and itemizable...
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