Nikki Is a Single Taxpayer Who Owns a Vacation Cottage

question 1648

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) $9,700
• C) $1,940
• D) $2,000

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