Refer to Problem 52, Part (c) and assume the IRS approach to allocating normal expenses allowable to all taxpayers is used. Based on these facts, what rental expense deductions are allowable in 2018 ?

Problem 52

In 2018, Joan Cannon incurred the following expenses relating to her vacation home:

During 2018, Joan personally used the vacation home for 20 days. Determine the rental expense deduction that she is entitled to claim on her 2018 tax return in each of the following cases. Use the Tax Court method of allocating normal expenses allowable to all taxpayers.

a. Joan rents out the vacation home for 10 days during the year and receives \(\$ 800\) in rental income.

b. Joan rents out the vacation home for 30 days during the year and receives \(\$ 1,500\) in rental income.

c. Joan rents out the vacation home for 230 days during the year and receives \(\$ 9,000\) in rental income.

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Mortgage Interest Property taxes Utility expenses Depreciation Total expenses $6,000 4,000 4,000 6,000 $20,000