Marlene Is a Single Taxpayer with an Adjusted Gross Income

question 88

Multiple Choice

Marlene is a single taxpayer with an adjusted gross income of $140,000. In addition to her personal residence, Marlene owns a ski cabin in Vail. She uses the cabin for 40 days during the current year and rents it out to unrelated parties for 80 days, receiving rent of $10,000. Marlene's costs before any allocation related to the cabin are as follows:
?
$$\begin{array} { l r } \text { Mortgage interest and property taxes } & \$ 9,000 \\\text { Utilities, maintenance, and repairs } & 4,500 \\\text { Depreciation } & 6,000\end{array}$$
Based on the above information, what is her allowable depreciation deduction?

• A)$- 0 -
• B)$1,000
• C)$3,000
• D)$4,000
• E)$6,000

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Definitions:

Non-Performance

Failure to fulfill a contractual duty or obligation within the agreed timeframe or specifications.

Substituted Agreement

An agreement that replaces a previous contract, often to revise terms or settle a dispute.

Verbal Contract

An agreement between parties made through spoken words rather than in written form, still legally binding but harder to prove.

Breach

The violation or non-fulfillment of a legal agreement, duty, or contract.