rental_activities - Part 2: Mixed personal/rental use. Joan...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Topic: Rental activities (Sec. 280A) Part 1: Rental property – minimal 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 Advertising 300 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 : First, why is this considered rental property (minimal personal use)? What amounts would Joan report on her tax return? Where are these amounts reported?
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Part 2: 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 Advertising 300 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 : First, why is this considered mixed personal/rental use property? What amounts would Joan report on her tax return? Where are these amounts reported?...
View Full Document

This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

Ask a homework question - tutors are online