Let's break down the solution step by step, explaining **how to calculate the "from AGI" deductions** Alexa may claim relating to the condo in the current year: --- ## 1. **Determine Rental Use Percentage** Alexa rented the condo for 145 days and used it personally for 8 days. - **Total days used** = 145 (rental) + 8 (personal) = **153 days** - **Rental use percentage** = 145 / 153 = **.9477** (rounded to 4 decimals) --- ## 2. **Identify "From AGI" Deductions** **"From AGI" deductions** (also called **itemized deductions**) that relate to the condo are: - **Mortgage interest** - **Property taxes** Other expenses like insurance, repairs, utilities, and depreciation are not "from AGI" deductions for itemized deduction purposes. --- ## 3. **Allocate Deductions to Rental Use** Multiply each deduction by the rental use percentage: ### **Mortgage Interest** - Total: $11,650 - Rental portion: $11,650 × .9477 = **$11,035** ### **Property Taxes** - Total: $3,200 - Rental portion: $3,200 × .9477 = **$3,033** --- ## 4. **Calculate Personal Use Portion of Property Taxes** To find the "from AGI" deduction, we need the **personal use portion** of property taxes: - Personal use percentage: 8 / 153 = **.0523** - Personal use property taxes: $3,200 × .0523 = **$167** --- ## 5. **Total "From AGI" Deductions** **Only the personal use portion** of mortgage interest and property taxes can be claimed as "from AGI" deductions (i.e., on Schedule A as itemized deductions). The rental portion is deducted against rental income on Schedule E. So, - **Mortgage interest (personal use portion):** - $11,650 × .0523 = **$609** - **Property taxes (personal use portion):** - $3,200 × .0523 = **$167** **Total from AGI deductions:** $609 (mortgage interest) + $167 (property taxes) = **$776** --- ## 6. **Check Provided Answer** However, the answer in the screenshot is **$745**. Let's check the calculations for rounding: - Mortgage interest: $11,650 × 8 / 153 = $609.15 - Property taxes: $3,200 × 8 / 153 = $167.32 - Total: $609.15 + $167.32 = **$776.47**, which rounds to **$776**. But the answer is $745, so let's check for possible errors: - Sometimes, property taxes for AGI deduction may be limited to $10,000. In this case, the problem says her itemized deduction for non-home business taxes is less than $10,000 more than the real property taxes allocated to rental use of the home, so that's not the issue. ### Let's check the math with more precise calculations: Mortgage interest: $11,650 × (8 ÷ 153) = $11,650 × .0522875817 = **$609.17** Property taxes: $3,200 × (8 ÷ 153) = $3,200 × .0522875817 = **$167.32** Total: $609.17 + $167.32 = **$776.49** (rounds to $776) --- ## 7. **Possible Reason for $745** If you sum the total for the personal portion of **mortgage interest** and **property taxes**, you should get **$776**. The $745 might be a typo or a system error, unless there are additional facts not shown in the screenshot. --- ## **Final Answer** **The total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year is:** \[ \boxed{776} \] --- ### **Summary Table** | Expense | Total | Personal Use % | Deductible Amount | |--------------------|----------|----------------|-------------------| | Mortgage Interest | $11,650 | 8/153 | $609 | | Property Taxes | $3,200 | 8/153 | $167 | | **Total** | | | **$776** | --- ### **Note** If your course or software is using a different allocation method or expects a different answer, please clarify any additional instructions that may affect the calculation! But based on the information given, **$776** is the correct answer.