Question: Mel and Helen own a beachfront home in Myrtle Beach, S.C. During the year, they rented the house for 5 weeks (35 days) at $800

Mel and Helen own a beachfront home in Myrtle Beach, S.C. During the year, they rented the house for 5 weeks (35 days) at $800 per week and used the house for personal purposes 65 days. The costs of maintaining the house for the year were:
Mortgage interest .... $5,500
Real property taxes ... 4,500
Insurance ......... 650
Utilities ......... 1,000
Repairs and maintenance . 480
Depreciation (unallocated) . 3,500
a. What is the proper tax treatment of this information on their tax return?
b. What is the proper tax treatment if Helen and Mel rented the house for only 2 weeks (14 days)?

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a Because the personal use of the home exceeds 14 days the home is a vacation home and deductions ar... View full answer

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