Carmen owns a house that she rents out for $600 per month.Her expenses for the 2018 tax year are as follows: $\begin{array}{llcc}
\text { Real estate taxes } &\$900 \
\text {Mortgage interest } &4,000\
\text { Insurance} &300\
\text {General repairs } &320\
\end{array}$
Carmen bought the property in March of 2004, 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

Carmen owns a house that she rents out for $600 per month.Her expenses for the 2018 tax year are as follows: $\begin{array}{llcc}
  \text { Real estate taxes } &\$900  \
 \text {Mortgage interest  } &4,000\
 \text {  Insurance} &300\
 \text {General repairs  } &320\
\end{array}$
 Carmen bought the property in March of 2004, 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).

Quizplus · Accepted Answer

The Answer of Carmen owns a house that she rents out for $600 per month.Her expenses for the 2018 tax year are as follows: $\begin{array}{llcc}
  \text { Real estate taxes } &\$900  \
 \text {Mortgage interest  } &4,000\
 \text {  Insurance} &300\
 \text {General repairs  } &320\
\end{array}$
 Carmen bought the property in March of 2004, 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