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Donald owns a two-family home. He rents out the first floor and resides on the second. The following expenses attributable to the entire building were

Donald owns a two-family home. He rents out the first floor and resides on the second. The following expenses attributable to the entire building were incurred by Donald for the year ended December 31, 2020:

Real Estate Taxes $1,800

Mortgage Interest 1,200

Utilities 1,000

Repairs (first floor) 300

Repairs (second floor) 400

In addition, the depreciation attributable to the entire building would be $2,000. What is the total amount of expenses that Donald can deduct on Schedule E before ANY limitations?

$3,000

$3,300

$4,000

$5,300

None of the above

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