George owns a cabin in the Colorado mountains. Last year, the cabin was rented for 120 days at market value. Additionally, George and his family used the cabin for 45 days. Within parameters, George can deduct expenses related to the production of rental income.

Which of the following statements is false?

Repairs, maintenance, and depreciation are allowable deductions.

All deductions may be taken and a loss is allowed.

Expenses must be allocated between personal use and rental use.

The allocable portion of mortgage interest and property taxes are deducted first.