Mackensie owns a condominium in the Rocky Mountains.During the year,Mackensie uses the condo a total of 23 days.The condo is also rented to tourists for a total of 77 days and generates rental income of $10,900.Mackensie incurs the following expenses in the condo:

Using the court's method of allocating expenses,the amount of depreciation that Mackensie may take with respect to the rental property will be

Question

Mackensie owns a condominium in the Rocky Mountains.During the year,Mackensie uses the condo a total of 23 days.The condo is also rented to tourists for a total of 77 days and generates rental income of $10,900.Mackensie incurs the following expenses in the condo:

Using the court's method of allocating expenses,the amount of depreciation that Mackensie may take with respect to the rental property will be

Quizplus · Accepted Answer

C)
 11ea7e84_1f0f_4aa9_9a0a_cb57039fd56c_TB1260_00 The taxpayer's use exceeds 10% of the rental days so the property is limited by the vacation home rules. Note that the potential depreciation deduction is 77/100 × $11,000 = $8,470, but it is limited to the remaining income after taking all other deductions into account.

Mackensie Owns a Condominium in the Rocky Mountains