Jim and Linda also own various rental property. One of their properties (1125 Central Avenue, Charlotte, NC 28205) is a single-family residence that was rented all year (365 days of rental use). Jim and Linda did not use the home in 2021 for personal purposes but are actively involved in finding tenants, doing repairs and other general duties required of being a landlord. They purchased the Central Avenue home and immediately began renting it on 6/1/16. The purchase price was $211,500 and the land was valued at $41,250 (included in purchase price).

The home on Central Avenue had the following income and expenses for 2021.

Rent Received: $24,000 ($2,000 per month)
Mortgage Interest: $9,549
Real Estate Taxes: $1,856
Homeowners Association Dues: $450
Repairs and Maintenance: $3,125 (none of these repairs need to be capitalized)
Insurance: $921
Lawn Care: $1275

Another one of their properties (543 S Ocean Blvd, North Myrtle Beach, SC 29582) is a vacation home that was rented 82 days and had personal use of 18 days in 2021. Jim and Linda also are actively involved in this rental home and prefer to use the IRS method. The home was purchased on 8/1/2000 for $375,000 and the land was valued at $225,000. The home in North Myrtle Beach had the following income and expenses for 2021:
Rent Received: $38,263
Mortgage Interest: $12,275
Real Estate Taxes: $4,877
Insurance: $5,975
Management Fees: $5,105 (direct expense)
Cleaning Fees: $2,500
Homeowners Association Dues: $4,200
Repairs and Maintenance: $2,525 (none of these repairs need to be capitalized)
Utilities: $3164

Jim and Linda also own a mountain home (6646 Mountain View Way, Boone, NC 28607). This home is used primarily as a second home, but they did rent it to friends for two weeks in 2021. The home was purchased on 12/6/2009 for $625,750 and the land was valued at $153,650 (included in purchase price).

Rent Received: $3,000
Real Estate Taxes: $2,925
Insurance: $3,224
Homeowners Association Dues: $600
Repairs and Maintenance: $3,004 (none of these repairs need to be capitalized

Prepare SCHEDULE E (FORM 1040)