What is the effect on the basis of the condominium

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Reference no: EM13971349

During the current year, Kim incurs the following expenses with respect 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 $8,000 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 total gross income of $9,000 

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

2. What is the effect on the basis of the condominium? 

Reference no: EM13971349

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