Chapter 3 discussions - . duringtheyearis$4,000.$950,...

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Sherry rents her vacation home for 6 months and lives in it for 6 months during the year.  Her gross rental income  during the year is $4,000.  Total real estate taxes for the home are $950, and interest on the home mortgages is  $3,000.  Annual utilities and maintenance expenses total $1,800, and depreciation expense is $4,500.  Calculate  Sherry's net income from the vacation home for this tax year.  $4,000.00 gross income    1,975.00 Less: interest and taxes (50%)    2,025.00 Balance       900.00 Less: utilities and maintenance    1,125.00 Balance    1,125.00 Less: Depreciate         $0.00 Net incomes Walter, a single taxpayer, purchased a limited partnership interested in a tax shelter in 1985.  He also acquired a  rental house in 2009, which he actively manages.  During 2009, Walter's shares of the partnership’s losses were  $30,000, and his rental house generated $20,000 in losses.  Walter's modified adjusted gross income before passive 
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