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 $4,800
Sean and Jenny own a home in Boulder City, Nevada, near Lake Mead. During the year, they rented the house for 40 days for $4,800 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 $15,350 in mortgage interest, $4,040 in property taxes, $2,000 in utilities, $1,660 in maintenance, and $11,800 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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