Determine the total amount of deductions


Response to the following problem:

During the current year, Kim incurs the following expenses with repects to her beachfront condominium in Hawaii:

Insurance $500

Repairs and Maintenance 700

Interest on mortgage 3,000

Property taxes 1,000

Utilities 800

In addition to the expenses listed above, Kim could have deducted a total of $8000 depreciation if the property had been acquired only for investment purposes. During the year, Kim uses the condominium 20 days for vacation. She also rented it out for a total of 60 days during the year, generating a total gross income of $9000.

a. What is the total amount of deductions for and from AGI that Kim may take during the current year with respect to the condo?

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Taxation: Determine the total amount of deductions
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