LO7 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:

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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Mortgage interest $5,500 Real property taxes Insurance Utilities Repairs and maintenance Depreciation (unallocated) 4,500 650 1,000 480 3,500