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During the year, Jacob rented his vacation home for three months and spent one month there. Gross rental income from the property was $5,000. Jacob
During the year, Jacob rented his vacation home for three months and spent one month there. Gross rental income from the property was $5,000. Jacob incurred the following expenses: mortgage interest, $3,000 real estate taxes, $1,500 utilities, $800 maintenance, $500 and depreciation, $4,000. Compute Jacobs allowable deductions for the vacation home under the court's approach and the IRS's approach
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