Georgia owns a home in Colorado that she rents for $1,200 per month she does not use the home personally).While she was in Europe in November,the roof in her rental home leaked and her tenant repaired it for $900.For the following month's rent December),her tenant paid her $300 for rent $1,200 - $900).What amounts should Georgia include for rental income and repair expense,respectively,for December?

Question

Quizplus · Accepted Answer

Georgia should include the full rental income of $1,200 for December, as the tenant's repair expense is considered a separate transaction. The $900 repair cost is deductible as a repair expense.

Georgia Owns a Home in Colorado That She Rents for $1,200