Question

Jenny’s adjusted gross income (AGI) is $120,000 a year and she owns a real estate property that generates a rental income of $10,000 annually. If she pays a mortgage interest of $4,000 on her property per year, she can write off up to _____ in depreciation.

Answer 1

$4,000

Step-by-step explanation:

Data provided in the question:

Jenny’s adjusted gross income (AGI) = $120,000

Annual rental income generated = $10,000

Mortgage interest = $4,000

Now,

Since her adjusted gross income is given i.e $120,000.

Therefore,

she can deduct the mortgage interest in full as depreciation.

Hence,

The answer is she can write off up to $4,000 in depreciation