Problem 3

# Problem 3 - Prob Set 3 1 Tom owns a vacation home in Oregon...

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Prob Set 3 1. Tom owns a vacation home in Oregon which he uses personally for 30 days during the year. He also rents the home out for ten days for \$1,000. His expenses allocated to the rental days are \$300 of mortgage interest and property taxes, \$275 of maintenance costs, and \$400 of depreciation. How is this treated for tax purposes? 2. Moe owns a vacation home in Montana which he uses personally for 15 days during the year. He also rents the home out for 45 days for \$1,500. His expenses allocated to the rental days are \$400 of mortgage interest and property taxes, \$475 of maintenance costs, and \$1,000 of depreciation. How is this treated for tax purposes? 3. Alex owns a vacation home in Nevada which he uses personally for 15 days during the year. He also rents the home out for 160 days for \$5,000. His expenses allocated to the rental days are \$2,500 of mortgage interest and property taxes, \$1,850 of maintenance costs, and \$2,000 of depreciation. How is this treated for tax purposes? 4. Frank started running his business in March of 2009. His start up costs were: \$10,000 from 2008 and
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## This note was uploaded on 09/30/2011 for the course ECO 373 taught by Professor Qq during the Spring '11 term at CUNY Hunter.

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