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During the year. Martin rented his vacation home for three months and spent one month there. Gross rental income from the property was $5,000. Martin
During the year. Martin rented his vacation home for three months and spent one month there. Gross rental income from the property was $5,000. Martin incurred the following expenses: mortgage interest. $3,000; real estate taxes, $ 1, 500; utilities. $800; maintenance, $500; and depreciation, $4,000. Identify the type of property and indicate why (state the rule and apply the facts to the rule). Compute Martin's allowable deductions for the vacation home using the IRS's approach. What schedule does Martin report rental income and expenses? Are any personal expenses deductible? If so, how are these expenses classified (for AGI, from AGI), what schedule do they appear on? How much is deductible
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