A taxpayer rents out the guesthouse behind her home for $800 per month. The current tenant has lived there continuously for more than 2 years. The taxpayer paid a contractor $1,200 to paint the exterior of the guesthouse. What amount of the painting expense is deductible and on what schedule should the expense be reported?

A.$1,200 on Schedule A

B.$1,200 on Schedule C

C.$1,200 on Schedule E

D.$0