Assuming Alexa receives $20,000 in gross rental receipts, answer the following questions:

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?

What is your question. We are not her to do your work for you, so you should try to answer this yourself, then we can check your answer or have a specific question to the problem we can help you or give you guidance.

What is your question. We are not her to do your work for you, so you should try to answer this yourself, then we can check your answer or have a specific question to the problem we can help you or give you guidance.

Here is what I come up with. Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:
Insurance $2,000
Mortgage interest 6,500 (from agi)
Property taxes 2,000
Repairs & maintenance 1,400
Utilities 2,500
Depreciation 14,500
During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes during the year. Alexa’s AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income.