Bob White owned a cabin in the Great Smoky Mountains. He used it for 16 days and rented it out for 190 days during the year. Which of the following is true?

a. All allocated expenses are deductible

(subject to the passive loss rules).

b. Only allocated expenses up to gross rentals are deductible.

c. The vacation home qualifies as a principal residence.

d. All rentals are received tax free and no expenses, other than taxes and interest, are deductible.