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Serhud [2]
3 years ago
11

Martha, who is single, has a main home in Houston. In the current year, she rented it for 10 days, receiving $5,000 in rental in

come. Martha paid $20,000 in mortgage interest and $10,000 in real estate taxes on her home in the current year. What is the net effect of these items on her adjusted gross income g
Business
1 answer:
uranmaximum [27]3 years ago
6 0

Answer:

$5,000 increase

Explanation:

As Martha has the main home in Houston and in the current year she rented it for only 10 days, this means that house is rented for less than 14 days and will be still treated as her personal residence, therefore, no deduction will be available for Martha against her rental income. Martha's Adjusted gross income will be increased by an amount of $5,000.

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