48. LO.3 During the year (not a leap year), Anna rented her vacation home for 30...

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48. LO.3 During the year (not a leap year), Anna rented hervacation home for 30 days, used it personally for 20 days, and leftit vacant for 315 days. She had the following income and expenses:Rent income $ 7,000 Expenses ?Real estate taxes 2,500 ?Interest onmortgage 9,000 ?Utilities 2,400 ?Repairs 1,000 ?Roof replacement (acapital expenditure) 12,000 ?Depreciation 7,500 1. Compute Anna’snet rent income or loss and the amounts she can itemize on her taxreturn, using the court’s approach to allocating property taxes andinterest. 2. How would your answer in part (a) differ using theIRS’s method of allocating property taxes and interest?
49. LO.3 How would your answer to Problem 48 differ if Anna hadrented the house for 87 days and had used it personally for 13days?

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48 1 Because the vacation home is rented for more than 15 days and is used for more than 14 days or 10 of the days rented it is considered a rental personal residence Gross income 7000 Deduct Taxes and interest 30365 11500 94521 Remainder to apply to rental operating See Answer

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