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Worker-Classification Issues

In:

Submitted By lh3m
Words 565
Pages 3
Homework-1 Part 1 IRS method Gross income Advertising expense use it for property taxes and mortages interest Mortages interest Property taxes use it for rental expense and deperication dedection Repaires&maintenance Utilities Insurance Depreciation Depreciation (on entire condo)

10,000 -500 9,500 -2,386 -614 6,500 -443 -648 -682 4,727 -4,727 5,795

3,500 900 650 950 1,000

rent days/total days 68% 75/110

Insurance 8,500

1,000

a

Net rental income a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo? What is Natalie’s net income (loss) for the condo (the net amount on schedule E), Advertising expense -500 Mortages interest -2,386 Property taxes -614 Repaires&maintenance -443 Utilities -648 Insurance -682 Depreciation -4,727 total deduction -10,000 AGI DEDUCTION 10,000

b

What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo? total amount of itemized deductions Natalie may deduct in the current year related to the condo is 1400


Mortages interest Property taxes

-2,386 -614 -3,000 4,400 1,400 150000 -4,727 145273

c

If Natalie’s basis in the condo at the beginning of the year was $150,000, what is her basis in the condo at the end
Beginning of the year Depericiation Ending

d

Assume that gross rental revenue was $1,000 (rather than $10,000), what amount of for AGI deductions may Natalie deduct in the current year related to the condo? What is Natalie’s net income (loss) for the condo (the net amount on Schedule E)? for AGI deductions may Natalie deduct is 1000 Natalie’s net income (loss) (1773)
Gross income Advertising expense use it for property taxes and mortages interest Mortages interest Property taxes use it for rental expense and deperication dedection Repaires&maintenance Utilities Insurance

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