Harry has a vacation home and is considering renting it to others when he is not using it. Mixed-use rentals sound like his best option. Which of the following statements regarding mixed use rentals is NOT correct?

A)

There is no possibility of a $25,000 ordinary loss against income.

B)

The rental income and expenses are reported on Schedule E of the Form 1040.

C)

If the vacation home is rented for at least 15 days a year, and it is also used for personal use more than the greater of 14 days per year or 10% of the rental days, rental expenses are not deductible.

D)

The mortgage interest and property taxes allocable to the personal use of the vacation home are deductible on Schedule A of Form 1040 as itemized deductions.