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Business, 06.03.2020 18:50 floverek

Piper owns a vacation cabin in the Tennessee mountains. Without considering the cabin, she has gross income of $65,000. During the year, she rents the cabin for two weeks for $2,500 and uses it herself for four weeks. The total expenses for the year are $10,000 mortgage interest; $1,500 property tax; $2,000 utilities, insurance, and maintenance; and $3,200 depreciation. If an amount is zero, enter "0". a. What effect does the rental of the vacation cabin have on Piper's AGI? Piper reports rental income of $ and rental expenses of $ for AGI. Feedback Restrictions on the deductions allowed for part-year rentals of personal vacation homes were written into the law to prevent taxpayers from deducting essentially personal expenses as rental losses. b. What expenses can Piper deduct, and how are they classified (i. e., for or from AGI)? Note: Assume that she itemizes her deductions. a. Utilities $ Not deductible b. Insurance $ Not deductible c. Property Taxes $ From AGI d. Mortgage interest $ From AGI e. Maintenance expenses $ Not deductible

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Piper owns a vacation cabin in the Tennessee mountains. Without considering the cabin, she has gross...
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