Certification Warm Up: Drill & Practice

During the tax year, Nathan rented out his San Diego condo while he served a tour of duty overseas, and his qualified rental expenses exceeded his rental income by $1,600 and his nonpassive income was $45,000. Although his parents served as property managers in his absence, he was able to make the decisions about the rental agreement and approving the tenant before he left, and about most repairs via cell phone.

Can Nathan's rental loss of $1,600 be offset as a deduction against his gross income?

Rafi was transferred overseas and began renting out his residence on August 1 of the tax year. He can only report five months of his mortgage interest and property taxes on his Schedule E.

Charles used his rental property for personal use 7 days and rented it for 63 days. Can Charles deduct his rental expenses on Schedule E.

Schedules K-1 and Rental Income Workout