6Q-50 - Q.50 pp.6-41 Adelene rented her personal residence...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Q.50, pp.6-41 Adelene, rented her personal residence for 14 days during the year. Rent income was $5000. Expenses for the year were: Real property taxes $3,800 Mortgage interest 7,500 ---
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Q 50 rented for less than 15 days, the rental income of $5,000 is excluded from Adelene’s gross income. The only expenses that can be deducted in this case are the real property taxes of $3,800 and the mortgage interest of $7,500. These expenses are classified as itemized deductions (i.e., deductions from AGI). Therefore, there is no effect on AGI. p. 6-19
Image of page 2
pp.6-38, q.34 34. a. Gross income: Salary income $60,000 Net rent 6,000 Dividend income 3,500 $69,500 Deductions for AGI: Alimony paid $12,000 Contribution to traditional IRA 5,000 Loss on sale of real estate 2,000 (19,000) Adjusted gross income $50,500
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
b. Itemized deductions: Mortgage interest on residence $ 4,900 Property tax on residence 1,200 Contribution to church 2,100 State income tax 300 Medical expenses [$3,250 – ($50,500 × 7.5%)] –0– Total itemized deductions $ 8,500
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern