Don Owns a Condominium near Orlando, California During the Year, Don Rented the Condo for 70 Days

question 103

Short Answer

Don owns a condominium near Orlando, California. This year, he incurs the following expenses in connection with his condo: $$\begin{array} { l r } \text { Insurance } & \$ 1,300 \\\text { Mortgage interest } & 10,000 \\\text { Property taxes } & 3,000 \\\text { Repairs and maintenance } & 900 \\\text { Utilities } & 2,200 \\\text { Depreciation } & 12,000\end{array}$$ During the year, Don rented the condo for 70 days and he received $17,400 of rental receipts. He did not use the condo at all for personal purposes during the year. Don is considered to be an active participant in the property. Don's AGI from all sources other than the rental property is $140,000. Don does not have passive income from any other sources. What is Don's AGI?

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Definitions:

Personal Income Taxes

Taxes imposed on individuals or households based on the income they earn over a certain period, often progressive in nature.

Federal Government Expenditure

The total amount of money spent by the federal government on various programs, services, and obligations.

Social Security Payments

Government transfers to eligible retirees, disabled workers, and survivors to provide them with income support.

Property Taxes

Taxes levied by local governments on real estate based on the property's value, and sometimes on personal property.