Chandler and Monica own a cabin in the mountains. The house was rented to unrelated parties for eight weeks during the year. Monica and the children used the house $11$ days for their vacation during the year. After properly dividing the expenses between rental and personal use, it was determined that a loss was incurred as follows:

Gross rental income $$

$$4,000$

Less: Mortgage interest and property taxes

$$3,500$

$$ Other allocated expenses

$2,000$

$(5,500)$

Net rental loss $$

$($$$1,500)$

$$

What is the correct treatment of the rental income and expenses on Chandler and Monica$$s joint income tax return for the current year assuming the IRS approach is used if applicable?

a$.$

A $$1,500$ loss should be reported.

b$.$

Only the mortgage interest and property taxes should be deducted.

c$.$

Since the cabin was used more than $10$ days personally by Chandler and Monica, the rental expenses $($other than mortgage interest and property taxes$)$ are limited to the gross rental income in excess of deductions for interest and taxes allocated to the rental use.

d$.$

Chandler and Monica should include none of the rental income or expenses related to the cabin in their current year income tax return.