LO7 Lee and Sally own a winter retreat in Harlingen, Texas, that qualifies as their second home. This year they spent 40 days in their cabin. Because of its ideal location, it is easy to rent at $120 a day and was rented for 80 days this year. The total upkeep costs of the cabin for the year were as follows:

What is the proper treatment of this information on Lee and Sally’s tax return?

Transcribed Image Text:

Mortgage interest $9,000 Real and personal property taxes 1,200 Insurance 750 Utilities 600 Repairs and maintenance 1,000 Depreciation (unallocated) 2,500