Carmen owns a house that she rents out for $600 per month. Her expenses for the 2016 tax year are as follows:
Carmen bought the property in March of 2002, and her basis for depreciation on the house is $110,000. She uses straight-line depreciation with a 27 ½ -year life, so the depreciation on the house is $4,000. Calculate Carmen's net income or loss from renting the house if her gross rental income is $7,200 ($600 × 12 months).

Question

Quizplus · Accepted Answer

The Answer of Carmen owns a house that she rents out for $600 per month. Her expenses for the 2016 tax year are as follows:
Carmen bought the property in March of 2002, and her basis for depreciation on the house is $110,000. She uses straight-line depreciation with a 27 ½ -year life, so the depreciation on the house is $4,000. Calculate Carmen's net income or loss from renting the house if her gross rental income is $7,200 ($600 × 12 months).

Carmen Owns a House That She Rents Out for $600