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Delvig [45]
3 years ago
10

John owns a second home in Palm Springs, California. During the year he rented the home for $4,000 for 36 days and used the hous

e for 14 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included $5,000 in mortgage interest, $600 in property taxes, $900 for utilities and maintenance, and $3, 500 of depreciation. What is John's deductible rental loss, before considering the passive loss limitations? $200 $875 $3, 200 $3, 500 $0
Business
1 answer:
tekilochka [14]3 years ago
7 0

Answer:

Option (C) is correct.

Explanation:

Total expenses:

= mortgage interest + property tax + utilities and maintenance + Depreciation expense

= $5,000 + $600 +  $900 + $3,500

= $10,000

Proportionate rental expenses = Total expenses × \frac{36\ days}{(36 + 14) days}

Proportionate rental expenses = 10,000 × \frac{36\ days}{(36 + 14) days}

= $7,200

Rental Loss = Rental Income - Proportionate rental expenses

                   = $4,000 - $7,200

                   = -($3,200)

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Explanation:

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3 years ago
Roger is currently in the hospital, having been diagnosed with terminal cancer. Roger would like Kim, a close friend, to make an
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A durable power of attorney, instead, is used when the individual delegating power to another party has knowledge of being impaired soon and possibly is not going to recover. Thus, the durable power of attorney will be valid since the individual cannot handle business until the moment of his or her decease. During that time, the selected party is right to make health and finance decisions on behalf of the individual.

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In the film Islam and America: Through the eyes of Imran Khan, which of the following best describes how average Pakistanis resp
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Answer:

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