a. Using the court'sapproach to allocating property taxes and interest.Compute Anna's taxable net rent income or deductible rental loss.
b. Which expenses (if any) can she claim as itemized deductions? If it is an itemized deduction select "Yes", otherwise select "No".
c. Compute the amount she can itemize on her tax return related to these expenses.In your computations round any fractions to four decimal places. Round your final answer to the nearest dollar.
2d. Using the IRS'smethod of allocating property taxes and interest:Compute Anna's taxable net rent income or deductible rental loss.
Compute the amount she can itemize on her tax return related to these expenses.
Freddy, a sole proprietor, is one of several retail business owners competing to rent space in a desirable location that rents at a rateof $2,000 per month. Freddy pays the landlord 12 months’ rent up front, even though only two months’ advance rent is required. The lease term begins October 1, 2016. In addition, Freddy gives the landlord a $2,500 cash gift in order to sweeten the deal. Considering only these facts, what amount is deductible on Schedule C of Freddy’s 2016 tax return?