Leon and Sadonna have a vacation home in the Black Hills of South Dakota. Their yearly AGI, without the vacation rental, is typically in the $220,000 to $250,000 range. In 2020, the rental home generated $22,000 in revenue. The home was rented 240 days, and Leon and Sadonna used the home for 16 days. Annual property taxes on the vacation home were $5,000 and mortgage interest paid on the vacation property totaled $18,000. Other expenses (advertising, cleaning and maintenance, insurance, etc.) directly related to or apportioned to the rental use totaled $4,000. Ignore depreciation.

(a)What is the amount of realized loss from their rental property from Schedule E, and how much of that loss reported on Schedule E can they deduct on their Form 1040 in 2020?

(b) Specify the expense(s) and the amount(s), if any, of the vacation rental expenses listed above that can be deducted as an itemized deduction on Schedule A