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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?...
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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.
- Fall '08