Chapter 3 discussions - Sherry rents her vacation home for...

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Unformatted text preview: 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 $30,000, and his rental house generated $20,000 in losses....
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This note was uploaded on 11/29/2010 for the course ACC 102 taught by Professor Me during the Spring '10 term at Central Methodist University.

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Chapter 3 discussions - Sherry rents her vacation home for...

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