In: Accounting
Kelvin owns and lives
in a duplex. He rents the other unit for $680 per month. He incurs
the following expenses during the current year for the entire
property:
Mortgage interest | $ | 7,150 | |
Property taxes | 1,720 | ||
Utilities | 1,180 | ||
Fixed light fixture in rental unit | 65 | ||
Fixed dishwasher in personal unit | 180 | ||
Painted entire exterior | 890 | ||
Insurance | 1,300 | ||
Depreciation (entire structure) | 5,800 | ||
Required:
How are the above income and expenses reported on Kelvin’s tax return? (Enter Schedule E expense as a negative number.)
Particulars | Amount | ||||
Rent income from other unit | 8,160 | ||||
Mortgage interest | (7,150) | ||||
Property taxes | (1,720) | ||||
Utilities | (1,180) | ||||
Fixed light fixture in rental unit | (65) | ||||
Painted entire exterior | (890) | ||||
Insurance | (1,300) | ||||
Depreciation (Entire structure) | (5,800) | ||||
Passive loss | (9,945) | ||||
The deduction of Fixed dishwasher in personal unit is not included in Schedule E |