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Last fall (2017) Ann rented her new chalet in Vermont to a very nice couple for $1000/month starting in November until March 31, 2017.

Last fall (2017) Ann rented her new chalet in Vermont to a very nice couple for $1000/month starting in November until March 31, 2017.  The chalet cost $60,000 in the Spring of 2017 and Ann could only use it during my two-week vacation last summer.  Insurance cost $1,200/year and taxes another $600. Ann did, however, pay cash for the chalet.  It cost $600/month for all utilities during the rental period.  Ann also received the March rent in November as a security deposit.


Which of the following statements about the chalet is correct? (a) the March rent is taxable next year when applied, (b) the $600 utilizes are limited under code section 280A, (c) the property cannot show a tax deductible loss, or (d) none of the above

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(b) the $600 utilizes are... View the full answer

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