Stephen and Joy own a duplex in Newport Beach,CA.They live in one unit and rent the other to another couple.Their rental income for the year was $24,000.They incurred the following expenses for the entire duplex: $\begin{array}{lr}
\text { Insurance } & \$, 000 \
\text { Maintenance } & 800 \
\text { Utilities } & 1,800 \
\text { Depreciation } & 4,000
\end{array}$ What amount of net income from the duplex should Stephen and Joy report for the current year?
A)$7,300
B)$9,400
C)$16,700
D)$24,000

Question

Quizplus · Accepted Answer

To calculate the net income from the duplex, subtract the total expenses from the rental income. Since they live in one unit and rent out the other, only half of the expenses are deductible for the rental part. Total expenses are $2,000 + 800 + 1,800 + 4,000 = 8,600$. Half of that is $8,600 / 2 = 4,300$. So, the net income is $24,000 - 4,300 = 19,700$. However, there seems to be a mistake in my calculation as none of the provided options match the correct calculation based on the given data. Given the options, the closest to a logical answer based on the provided data and typical tax considerations would be $16,700, but this requires assuming there was an error in the calculation or presentation of options.

Stephen and Joy Own a Duplex in Newport Beach,CA What Amount of Net Income from the Duplex Should Stephen