Jenny's adjusted gross income is $120,000 a year and she owns real estate property that generates a rental income of $10,000 annually. If she pays mortgage interest of $4,000 on her property per year, she can write off up to _____ in depreciation.

Question

Jenny's adjusted gross income is $120,000 a year and she owns real estate property that generates a rental income of $10,000 annually. If she pays mortgage interest of $4,000 on her property per year, she can write off up to  _____ in depreciation.

Quizplus · Accepted Answer

Jenny can write off the rental income of $10,000 minus the mortgage interest of $4,000, which leaves $6,000 available for depreciation write-off.

Jenny's Adjusted Gross Income Is $120,000 a Year and She