Bobbi sold her house to Sam in the current tax year. The sales contract required that Sam pay $155,000 for the home and $1,500 for delinquent real estate taxes that Bobbi had not paid for the previous tax year. Sam made a $30,000 down payment on the property and obtained a mortgage for the balance of the purchase price. Sam plans to use the house as rental property. How should he handle the real estate taxes?

a) Take a $1,500 deduction for real estate taxes on his Schedule E for the rental home

b) Take a $1,500 real estate tax deduction on his Schedule A

c) Add the $1,500 to his depreciable basis in the house

d) Amortize the $1,500 over the life of his loan