Bailey owns a vacation home that qualifies as a residence with significant rental use. During the year, she used the home personally for 62 days and rented it for 206 days. She paid property taxes in the amount of $3,280 on this home for the year. She uses the IRS method to allocate expenses. How will this expense be treated on her tax return? Phon-deductible She will deduct $1.851 on Schedule E and $557 on Schedule A and the remaining $872 will be She will deduct $2,521 on Schedule E and $759 on Schedule A. She will deduct $3.280 on Schedule E. She will deduct $2.521 on Schedule E and the remaining $759 is non-deductible, She will deduct $3,280 on Schedule A pts