1) Rental Income (T776) Dax Jones purchased a new property on May 1st 2019 with the...

1) Rental Income (T776)

Dax Jones purchased a new property on May 1st 2019 with the intent to use it as a rental. The purchase price was $650,000. The land portion was valued at $50,000. He began advertising to find his first tenant right away. The following additional information was provided to you by Dax who has asked you to prepare his T776 form for 2019:

The first tenant moved in on June 1st and is paying $800 per month to rent one room
Two more tenants moved in on Sep 1 and Oct 1 and signed leases for $800 per month for

one room each. There is one more vacant room which is still available.
At the end of the year there was $800 in rent receivable still outstanding
The mortgage payment on the new house was $1,200 per month
Dax advertised online to find tenants and had spent $700 by the end of 2019
Property taxes paid for the year totaled $2,400
Mortgage interest paid for the year totaled $5,600
Home insurance cost $500 for the year
Snow removal/lawn mowing cost $600 for the year
Tenants did not pay for utilities. The electricity bill was $150 per month.

Required: Prepare a completed T776 form using the fillable pdf provided. (Reminder: Download the pdf form first and the open in Adobe Acrobat and fill in)

Solutions

Expert Solution

I HAVE DOWNLOADED T776...YOU CAN USE THE ANSWER GIVEN IN THE ABOVE PICTURE FOR YOUR REFERENCE AND FILL THE SAME IN YOUR T776...

PLEASE GIVE POSITIVE FEEDBACK BY GIVING THUMSUP.

THANKYOU

ekkarill92 answered 1 year ago

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