Assuming Alexa receives $20,000 in gross rental receipts, answer the following
a. What effect does the rental activity have on her AGI for the year?
b. Assuming that Alexa’s AGI from other sources is $90,000, what effect does
the rental activity have on Alexa’s AGI? Alexa makes all decisions with respect
to the property.
c. Assuming that Alexa’s AGI from other sources is $120,000, what effect does
the rental activity have on Alexa’s AGI? Alexa makes all decisions with respect
to the property.
d. Assume that Alexa’s AGI from other sources is $200,000. This consists of
$150,000 salary, $10,000 of dividends, and $25,000 of long-term capital gain
and net rental income from another rental property in the amount of $15,000.
What effect does the Cocoa Beach Condo rental activity have on Alexa’s AGI?

  1. 👍 0
  2. 👎 0
  3. 👁 372
  1. What kind of HELP do you need? You need to be specific when asking questions here.

    If all you do is post your entire assignment, with no evidence of thinking on your part, nothing will happen since no one here will do your work for you. But if you are specific about what you don't understand about the assignment or exactly what help you need, someone might be able to assist you.

    1. 👍 0
    2. 👎 1

    1. 👍 0
    2. 👎 0
  3. I think it's safe to say Alexa's condo is NOT a qualified residence (she did not reside in it at all) - that said, Alexa makes all decisions with respect to the property, qualifying her as an active participant . . . so, is she able to deduct the mortgage interest (as long as her AGI does not exceed the limit)??

    1. 👍 0
    2. 👎 1
  4. nerrr

    1. 👍 1
    2. 👎 1

Respond to this Question

First Name

Your Response

Similar Questions

  1. business math

    Samantha Vega gross weekly salary is 600 dollars her weekly federal withholding is 35 dollars . the Social Security tax is 6.2 percent of the first 90,000 . the Medicare tax is 1.45 percent of gross pay. this state tax is 1.5

  2. math

    Alexa and Emma are looking up at their house from the backyard. From alexa's point of view, the top of the house is at an ang;e of elevation of 40 degree. From Emma's point of view, directly closer to the house, it is 60 degree.

  3. accounting

    On October 31, a flood at Payne Company’s only warehouse caused severe damage to its entire inventory. Based on recent history, Payne has a gross profit of 25 percent of net sales. The following information is available from

  4. Stats

    This assignment requires you to use Excel. In question 1, you will use the charting features. In questions 2 and 3, use the regression tool from the analysis toolpack. There is no template for this assignment. Make sure you

  1. Accounting

    Using the data in situation a of Exercise 11-6, prepare the employer’s September 30 journal entries to record (1) salary expense and its related payroll liabilities for this employee and (2) the employer’s payroll taxes

  2. math

    Jude's kayak is 10 feet and 2 inches long. Alexa's kayak is 29 inches longer. How long is Alexa's kayak?

  3. Math

    Steven is moving to another city next weekend and wants to rent a moving truck. The rental rates for two companies in his area are shown below. Each company charges an initial fee for renting the truck, plus an additional amount

  4. Math

    Tatum Company has four products in its inventory. Information about the december 31, 2009, inventory is as follows: product total total total Net cost replacement realizable cost Value 101 $120,000 110,000 100,000 102 90,000

  1. Pre-Calc

    Alexa is weighing a construction barrel up a ramp 4 feet long into the back of a truck. The barrel weighs 120 pounds and the ramp is 45 degrees from the horizontal. How much work is Alexa doing?

  2. accounting-fory

    On January 1, 2012, Bartell Company sold its idle plant facility to Cooper Inc. for $1,050000. On this date, the plant had a depreciated cost of $735,000. Cooper paid $150,000 cash on January 1, 2012, and signed a $900,000 note

  3. Math

    Staley Watch Company reported the following income statement data for a 2-year period. 2008 2009 Sales $210,000 $250,000 Cost of goods sold Beginning inventory 32,000 44,000 Cost of goods purchased 173,000 202,000 Cost of goods

  4. Economics

    1. What determines the size of the key-money payments that landlords demand (and tenants offer) for the right to rent a controlled apartment? 2. Who, other than the owners of rental units, loses as a result of rent controls? Who

You can view more similar questions or ask a new question.