Solution Computation of Phoeve's not rental income Gross Rental Income of Property $8200 (-) Mortgage Interest $ 4600 c) Real Estate Taxes $ 1300 e) utilities $712.5 () Maintenance $ 337.5 $ 1250 e Depreciation [Allowed till $ 12.50 only. since Rental Exp. Cannot exceed Rental Income] Net Rental Income used working Note I As per the auestion property has been jor rented as well as personal Purpose. The provision says that if O
property used for personal purposes for more than rudays or 10% of days created whichever is greater, then will we treated as personal residence. Here used for 25 days as personal purpose herce personal residente So, Expenses allowed as the apportionment.
Allowed Expenses % = No of days Rented x 100 Days Rented + used days toe Personal purpor = 75 xlo 75+25 = 751 (i) utilities - 75% of $950 = $712.5 (1) Maintenance = 754. of $450 = $337.5 cil) Depreciation = 754.03 $4000 = $ 3000