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ACCO 340 Study Guide - Final Guide: Cegep, Registered Education Savings Plan, Income Splitting

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sapphirefly978
11 Jan 2017
School
Concordia University
Department
Accountancy
Course
ACCO 340
Professor
Mervat Saleh

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Document Summary

3 criteria"s: accrue on a continuous basis, calculated on a principal sum, compensation for the use of that principal. **trick: deductible when it is paid on the $ borrowed to produce income from business or property. Case a: start & end same year. Case b: start in 2015; ends in 2016. > cash basis; interest income 2015 0$ all in 2016. > 2015 -> 0/2016 - > 12 months (anniversary date) This is any amount received by the taxpayer in the year that was dependent on the use of or production from property whether or not that amount was an instalment of the sale price of the property. Business royalties (ex: head office receives royalties. Accrual method is used to calculate rental income. Management fees + fees to rental agents for locating. Cca can be claim (cannot create/increase a loss; based on all rental income) Dividends received by individuals are usually grossed up.

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Related Questions

Natalie owns a condominium near Cocoa Beach in Florida. Thisyear, she incurs the following expenses in connection with hercondo:

Insurance $1,050
Advertising expense 965
Mortgage interest 5,800
Property taxes 1,080
Repairs & maintenance 1,130
Utilities 550
Depreciation

8,700

During the year, Natalie rented out the condo for 94 days,receiving $22,500 of gross income. She personally used the condofor 50 days during her vacation.

Assume Natalie uses the Tax Court method of allocatingexpenses to rental use of the property. (Do not roundintermediate calculations. Round your final answers to the nearestwhole dollar amount.)

1) What is the total amount of for AGI (rental)deductions Natalie may deduct in the current year related to thecondo?

2) What is the total amount of itemized deductions Natalie maydeduct in the current year related to the condo?

3) If Natalie’s basis in the condo at the beginning of the yearwas $210,000, what is her basis in the condo at the end of theyear?

4) Assume that gross rental revenue was $4,500 (rather than$22,500). what amount of for AGI deductions may Nataliededuct in the current year related to the condo?

Natalie owns a condominium near Cocoa Beach in Florida. Thisyear, she incurs the following expenses in connection with hercondo:

Insurance $1,050
Advertising expense 965
Mortgage interest 5,800
Property taxes 1,080
Repairs & maintenance 1,130
Utilities 550

Depreciation 8700

During the year, Natalie rented out the condo for 94 days,receiving $22,500 of gross income. She personally used the condofor 50 days during her vacation

Assume Natalie uses the Tax Court method of allocatingexpenses to rental use of the property. (Do not roundintermediate calculations. Round your final answers to the nearestwhole dollar amount.)

​1) What is the total amount of forAGI (rental) deductions Natalie may deduct in the current yearrelated to the condo?

2)What is the total amount of itemized deductions Natalie maydeduct in the current year related to the condo?

3)If Natalie’s basis in the condo at the beginning of the yearwas $210,000, what is her basis in the condo at the end of theyear?

4) Assume that gross rental revenue was $4,500 (rather than$22,500). what amount of for AGI deductions may Nataliededuct in the current year related to the condo?

Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

Insurance $ 1,330
Advertising expense 700
Mortgage interest 5,700
Property taxes 1,330
Repairs & maintenance 750
Utilities 1,030
Depreciation 12,050

During the year, Natalie rented out the condo for 83 days, receiving $15,500 of gross income. She personally used the condo for 53 days during her vacation.

Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 366 days in the current year. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole dollar amount.)

a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to the condo?

For AGI deductions?

b. What is the total amount of itemized deductions Natalie may deduct in the current year related to the condo?

itemized deductions?

c. If Natalie’s basis in the condo at the beginning of the year was $167,000, what is her basis in the condo at the end of the year?

Basis?

d. Assume that gross rental revenue was $3,100 (rather than $15,500). what amount of for AGI deductions may Natalie deduct in the current year related to the condo?

For AGI deductions?