Reference no: EM132318517

1) Which of the following expense items is(are) deductible as rental expense for a rental property?

A)Travel related to the property

B) Management fees

C) Repairs and maintenance

D) All are deductible expenses

2) May owns a four-plex in Garden Grove, CA. She rents out 3 units and lives in the fourth. Her income and expenses for the entire four-plex are as follows: mortgage interest $8,200, property taxes $9,000, insurance $3,000, utilities $2,000, repairs and maintenance $1,000, depreciation on the entire complex of $5,000, and rental income of $25,000. What amount of net rental income or loss should May report on her current tax return?

A) $3,200 net loss

B) $3,850 net income

C) $21,150 net loss

D) $25,000 net income

3) A property that has been rented for 120 days and used for personal use for 13 days should be categorized as:

A) Primarily rental

B) Primarily personal

C) Personal/rental

D) None of these

4) Jane and Don own a ski chalet in Lake Tahoe, NV and rented it for 12 days for $8,000. The rest of the year, the chalet was used by them and their friends and family. What is the proper tax treatment of the $8,000?

A) Should be reported on Schedule E

B) None of the rental income is included in gross income

C) The amount should be reported on Schedule C

D) The amount should be reported as other income on Form 1040

5) Lupe rented her personal residence for 13 days to summer vacationers for $3,800. She lived in the home for the rest of the year. She has AGI of $95,000 excluding the rental income. Related expenses for Lupe's personal residence for the year include these:

Real property taxes $4,500

Utilities 5,000

Insurance 900

Mortgage interest 7,000

Repairs 800

Depreciation 1,500

What is Lupe's AGI after taking into consideration the rental income and related expenses?

A) $95,000

B) $98,098

C) $98,800

D) $115,000