Lupe rented her personal residence for 13 days to summer vacationers for $3,800.She lived in the home for the rest of the year.She has AGI of $95,000 excluding the rental income.Related expenses for Lupe's personal residence for the year include these: $\begin{array}{lr}
\text { Real property taxes } & \$, 500 \
\text { Utilities } & 5,000 \
\text { Insurance } & 900 \
\text { Mortgage interest } & 7,000 \
\text { Repairs } & 800 \
\text { Depreciation } & 1,500
\end{array}$ What is Lupe's AGI after taking into consideration the rental income and related expenses?

Question

Quizplus · Accepted Answer

Since Lupe rented her personal residence for less than 15 days during the year, the rental income is not taxable, and the related expenses are not deductible (except for mortgage interest and real property taxes which are always deductible on Schedule A if itemizing deductions). Therefore, her AGI remains $95,000.

Lupe Rented Her Personal Residence for 13 Days to Summer