. Michael Myers owns Smith's Grove Sanitarium, which he uses as a vacation home and rents when he is not using the property. During the current year, Myers rented the sanitarium for three months and spent one month there Gross rental income from the property was $5,000. Myers incurred the following expenses: mortgage interest $3,000; real-estate taxes, $1,500; utilities, $800; maintenance, $500; and depreciation, $4,000. Compute Myers' allowable deductions for the vacation home under the IRS's approach 2. In 2018, Dr. Sartain had the following insured personal casualty losses (arising from one casualty event in Haddonfield which was declared a Federally-declared disaster area). Sartain also had $42,000 AGI for the year before considering the casualty ar Asset Adjusted Before After Basis $9,200 3,000 3,700 $8,000 $1,000 4,000 1,700 Recovery $2,000 4,000 900 What is Dr. Sartain's casualty loss deduction