Sally Mars rents a lake cabin to 10 days of the year and lives in the cabin for 60 days. Which statement below describes the correct tax treatment of this vacation home? This cabin is a rental property. Expenses must be apportioned between rental and personal use. If the rental expenses exceed the rental revenues, the taxpayer may deduct a loss (subject to the passive activity rules). The taxpayer may deduct the personal portion of the property taxes as an itemized deduction and may also deduct any mortgage interest allocated to the personal portion if the cabin is a second residence. This cabin is a mixed use property. Expenses must be apportioned between rental and personal use. The rental expenses may only be taken up to rental income. The taxpayer may deduct the personal portion the property taxes as an itemized deduction and may also deduct any mortgage interest allocated to the personal portion if the cabin is a second residence. The cabin is predominately personal use. The taxpayer does not have to report the rental revenue and doesn't get to deduct any rental expenses. The taxpayer may deduct property taxes and mortgage interest if the cabin qualifies as a second home. none of the above