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Angela owns a condominium in the Shenandoah Mountains. During the year, Angela uses the condo a total of 21 days. The condo is also rented
Angela owns a condominium in the Shenandoah Mountains. During the year, Angela uses the condo a total of 21 days. The condo is also rented to tourists for a total of 79 days and generates rental income of $12,500. Angela incurs the following expenses:
Expense | Amount |
Mortgage interest | $ 4,100 |
Property taxes | 1,900 |
Utilities | 2,200 |
Insurance | 1,200 |
Depreciation | 10,000 |
Using the IRS method of allocating expenses, what is the amount of mortgage interest and property taxes allocable to the rental portion that Angela may deduct?
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