Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses Mortgage interest Property taxes $7,925 2,760 Insurance 2,950 Repairs & maintenance 1,875 Utilities 4,400 Depreciation 16,875 During the year, Alexa rented out the condo for 100 days and received $23,800 in gross rental rece all for personal purposes during the year. Alexa's AGI from all sources other than the rental property of passive income. (Leave no answer blank. Enter zero if applicable.) What effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses Mortgage interest Property taxes $7,925 2,760 Insurance 2,950 Repairs & maintenance 1,875 Utilities 4,400 Depreciation 16,875 During the year, Alexa rented out the condo for 100 days and received $23,800 in gross rental rece all for personal purposes during the year. Alexa's AGI from all sources other than the rental property of passive income. (Leave no answer blank. Enter zero if applicable.) What effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 46P
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Transcribed Image Text:Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo:
Mortgage interest
Property taxes
$7,925
2,760
Insurance
2,950
TULE
Repairs & maintenance
1,875
Utilities
4,400
16,875
Depreciation
Ce
During the year, Alexa rented out the condo for 100 days and received $23,800 in gross rental receipts. She did not use the condo at
all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $120,000. Alexa has no sources
of passive income. (Leave no answer blank. Enter zero if applicable.)
What effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property.
AGI
1.01
increases by
decreases by
no effect
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