Janie graduates from high school in 2010 and enrolls in college in the fall

Janie graduates from high school in 2010 and enrolls in college in the fall. Her parents pay $4,000 for her tuition and fees.
a. Assuming Janie's parents have AGI of $170,000, what is the American Opportunity credit they can claim for Janie?
b. Assuming Janie's parents have AGI of $75,000, what is the American Opportunity credit they can claim for Janie?


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Dick owns a house that he rents to college students

Dick owns a house that he rents to college students. Dick receives $750 per month rent and incurs the following expenses during the year:

Real estate taxes $ 1,250
Mortgage interest 1,500
Insurance 375
Repairs 562
Association Dues 1,600

Dick purchased the house in 1975 for $48,000. The house is fully depreciated. Calculate Dick's net rental income for the year, assuming the house was rented for a full 12 months.


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