Piper owns a vacation cabin in the Tennessee mountains. Without considering the cabin, she has a gross income of $65,000. During the year, she rents the cabin for two weeks for $2,500 and uses it herself for four weeks. The total expenses for the year are $10,000 mortgage interest; $1,500 property tax; $2,000 utilities, insurance, and maintenance; and $3,200 depreciation. If an amount is zero, enter "0".
a. What effect does the rental of the vacation cabin have on Sarah's AGI?
b. What expenses can Sarah deduct, and how are they classified (i. e., for or from AGI)?

A) Piper or Sarah's income is not affected by her rent income since the cabin was only rented for 14 days and she also used the cabin for personal purposes for more than 14 days.

B) She can deduct mortgage interest ($10,000) and property tax ($1,500), she cannot deduct any other expenses because she is not engaging in any real estate rental activity. These expenses (mortgage interest and property tax) are expenses that anyone can normally deduct from their AGI.

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.

the answer is: a greater percentage chance of loss

high risk investments had the characteristic of higher percentage of great return accompanied with higher percentage chance of loss.

this type of investments usually only suitable for investors that have enough capital to survive in case one or more of their investments fail. examples of high-risk investments are stocks and currencies.