McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 14

{Planning} Assume that in addition to renting the condo for 100 days, Alexa uses the condo for 8 days of personal use.Also assume that Alexa receives $30,000 of gross rental receipts.Answer the following questions:
a.What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days.b.What is the total amount of from AGI deductions that Alexa relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days.c.Would Alexa be better or worse off after taxes if she uses the Tax Court method of allocating expenses?