Utilities 3,200
Repairs 1,900
Depreciation 5,500
a. What is the proper tax treatment of this information on their tax
return using the Tax Court
method?
b. Is there an option for how to allocate the expense between personal
and rental use? Explain
c. What is the proper tax treatment if Matt and Marie rented the house
for only 14 days?
8. Janet owns a condominium at the beach. She incurs the following
expenses:
Mortgage interest $1,300
Property taxes 800
Insurance 1,500
Utilities 1,800
Repairs 300
Depreciation 4,000
What is the proper treatment of these expenses as applied to the
following situations? Use the Tax Court allocation method, if
applicable.
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