During the year (not a leap year), Anna rented her vacation home for 87 days, used it personally for 13 days, and left it vacant for 265 days. She had the following income and expenses:Rent income $7,000Expenses: Real estate taxes 2,500Interest on mortgage 9,000Utilities 2,400Repairs 1,000Roof replacement (a capital expenditure) 12,000Depreciation 7,500What amount of the real estate taxes can Anna deduct as an itemized deduction?

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Parker Clements

Business

2 April, 20:15

During the year (not a leap year), Anna rented her vacation home for 87 days, used it personally for 13 days, and left it vacant for 265 days. She had the following income and expenses:Rent income $7,000Expenses: Real estate taxes 2,500Interest on mortgage 9,000Utilities 2,400Repairs 1,000Roof replacement (a capital expenditure) 12,000Depreciation 7,500What amount of the real estate taxes can Anna deduct as an itemized deduction?

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Averi Deleon · Answer 1

Anna can deduct up to US$ 10,000, so she can deduct as an itemized deduction the payment of US$ 2,500 on real estate taxes she made.

Explanation:

Any taxpayer can deduct real estate taxes on the federal income tax return. For 2019, the IRS says a taxpayer can deduct up to $10,000 ($5,000 if you're married filing separately) But limits apply and you have to itemize to take the deduction.

Therefore, Anna can deduct up to US$ 10,000, so she can deduct as an itemized deduction, the payment of US$ 2,500 on real estate taxes she made.