At the beginning of the year the Smiths purchased a vacation home in Myrtle Beach, South Carolina for $200,000. They paid $50,000 down and financed the remaining $150,000 with a 6% mortgage secured by the home. They used the home for personal purposes for 20 days and rented out the home for 200 days. They received $30,000 in rental income and incurred $500 of rental advertising expenses. In addition to interest of $9,000, they also incurred the following expenses: real estate taxes of $2,200; maintenance of $3650; utilities of $3,200; insurance of $2,500; and repairs of $1,500; depreciation of $6970. How is this property classified? How are their expenses allocated to the rental use under the Tax Court and IRS methods? What may they deduct on their Schedule A?