Step-by-step explanation:
To determine the maximum deductible expenses that Suhaime can claim against rental income, we need to consider the tax regulations for rental properties.
(i) Property tax of $4,500:
Property taxes are generally deductible expenses for rental properties. So, Suhaime can claim the full amount of $4,500 as a deductible expense.
(ii) Property maintenance expense of $10,500:
Property maintenance expenses, such as repairs and upkeep, are also deductible for rental properties. Suhaime can claim the full amount of $10,500 as a deductible expense.
(iii) Repair of air-conditioners in investment property costing $800:
Repair expenses for rental properties are deductible. Suhaime can claim the full amount of $800 as a deductible expense.
(iv) Replacement of refrigerator ($1,900) as requested by the tenant as the existing refrigerator is beyond repair:
The replacement of a refrigerator is considered a capital expense rather than a deductible repair expense. Capital expenses are typically depreciated over several years instead of being fully deductible in the year of purchase.
Now, let's calculate the total deductible expenses for Suhaime:
Total deductible expenses = Property tax + Property maintenance expense + Repair expense
Total deductible expenses = $4,500 + $10,500 + $800
Total deductible expenses = $15,800
Therefore, the maximum deductible expenses that Suhaime can claim against rental income for the given expenses incurred in 2022 is $15,800.
The closest option to this value is:
Group of answer choices:
$15,000.