Mackenzie owns a condominium in the Great Smokey Mountains. During the year, Mackenzie uses the condo a total of 27 days. The condo is also rented to tourists for a total of 73 days and generates rental income of $8,900. Mackenzie incurs the following expenses in the condo:
Mortgage interest $ 3,000
Property taxes 1,500
Using the Court method of allocating expenses, the amount of depreciation that Mackenzie may take with respect to the rental property will be:
The only answer that seems to work is a. $2476. If you take 73% of all ...
The solution calculates the depreciation costs of a rental property owned by Mackenzie.