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

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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 ---
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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
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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
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b. Itemized deductions: Mortgage interest on residence $ 4,900 Property tax on residence 1,200 Contribution to church
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This note was uploaded on 04/26/2010 for the course ACCOUNTING 2251 taught by Professor Sieux during the Spring '08 term at CSU East Bay.

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

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