Nikki Is a Single Taxpayer Who Owns a Vacation Cottage

question 10

Multiple Choice

Nikki is a single taxpayer who owns a vacation cottage on the lake.During the year,she rented it for $2,000 for 14 days,lived in it for 56 days,and left it vacant the remainder of the year.The year's expenses amounted to $5,000 interest expense,$800 property taxes,$1,500 utilities and maintenance,and $2,400 depreciation.Using the IRS method of allocating expenses,how much of the property-related expenses will be deductible for AGI?

• A)$0
• B)$2,000
• C)$1,940
• D)$9,700