rental_activities - Part 2: Minimum personal use. Joan...

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Topic: Rental activities Part 1: Mixed personal/rental use. Joan owned a cabin near the local ski resort. During the year Joan and her family use the cabin a total of 25 days. Joan also rents the cabin to out-of-state skiers for a total of 50 days during the year generating rental income of $10,000. Joan incurs the following expenses related to the cabin: Expense Amount Property taxes 1,500 Mortgage interest 3,000 Utilities 2,000 Insurance 1,500 Security and snow removal 2,500 In addition, Joan would have been entitled to $12,000 of MACRS depreciation if the property had been entirely rental property held for investment purposes. Required : What amounts would Joan report on her tax return?
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Unformatted text preview: Part 2: Minimum personal use. Joan owned a cabin near the local ski resort. During the year Joan and her family use the cabin a total of 10 days. Joan also rents the cabin to out-of-state skiers for a total of 65 days during the year generating rental income of $10,000. Joan incurs the following expenses related to the cabin: Expense Amount Property taxes 1,500 Mortgage interest 3,000 Utilities 2,000 Insurance 1,500 Security and snow removal 2,500 In addition, Joan would have been entitled to $12,000 of MACRS depreciation if the property had been entirely rental property held for investment purposes. Required : What amounts would Joan report on her tax return?...
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This note was uploaded on 03/03/2010 for the course ACG 6845 taught by Professor Kelliher during the Spring '09 term at University of Central Florida.

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