Question
Sean and Jenny own a home in Boulder City, Nevada, near Lake Mead. During the year, they rented the house for 40 days for $3,400
Sean and Jenny own a home in Boulder City, Nevada, near Lake Mead. During the year, they rented the house for 40 days for $3,400 and used it for personal use for 18 days. The house remained vacant for the remainder of the year. The expenses for the house included $14,300 in mortgage interest, $3,620 in property taxes, $1,300 in utilities, $1,380 in maintenance, and $11,100 in depreciation. What is the deductible net loss for the rental of their home (without considering the passive loss limitation)? Use the Tax Court method for allocation of expenses.
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