Rex and Agnes Harrell purchased a beach house at Duck, North Carolina, in early 2008. Although they intended to use the beach house occasionally for recreational purposes, they also planned to rent it through the realty agency that had handled the purchase in order to help pay the mortgage payments, property taxes, and maintenance costs. Rex Is a surgeon, and Agnes is a counselor. The beach house was in need of substantial repairs. Rather than hiring a contractor, Rex and Agnes decided they would make the repairs themselves. During both high school and college, Rex had worked summers in construction. In addition, he had taken an advanced course in woodworking and related subjects from a local community college several years ago. During 2008, according to a log maintained by the Harrells, they occupied the beach house 38 days and rented it 49 days. The log also indicated that on 24 of the 38 days that they occupied the beach house , one or both of them were engaged in work on the beach house. Their two teenage children were with them on all of these days, but did not help with the work being done. On their 2008 income tax return, Rex and Agnes, who filed a joint return, treated the beach house as a rental property and deducted a pro rata share of the property taxes, mortgage interest, utilities, maintenance and repairs, and depreciation in determing their net loss from the beach home. An IRS agen has limited the deductions to the rent income. He contends that the 14-day personal use provision was exceeded and that many of the alleged repairs were capital expenditures. Advise the Harrells on how they should respond the IRS