Question:

Tina owns a condominium in Santa Barbara. During the current year, she incurs the following expenses related to the property:

Mortgage interest $10,000

Property taxes 1,800

Utilities 800

Maintenance fees 1,000

Repairs 600

Depreciation 6,000

a. For each of the following scenarios, indicate whether Tina would treat the condo for income tax purposes as personal use property, a rental, or a vacation home.

Case	Rental Income	Rental Days	Personal-use Days	Is the classification: Personal, Rental, or Vacation home?
A	$12,000	300	0
B	$9,000	40	10
C	$9,000	40	20
D	$2,000	12	48
E	$11,000	280	20

b. Consider Case B. What is the current deduction for adjusted gross income? If any expenses aren't deductible for AGI, explain why not and what happens to them.