Predominately Personal Use Residential rental property used personally greater than 14 days or 10_% of rental days is considered a personal residence. Rental deductions are allowed up to rental 125.000 but no loss is allowed. (Personal losses are rarely deductible). Mortgage interest and RE taxes are deducted first (using Tax Court or IRS method) Other expenses allocated next method) Then depreciation allocated Portion of Mortgage Interest and Real Estate Taxes not allocated to rental portion can be deducted on Schedule A (itemized deduction)