Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $2,200, and interest on the home mortgage is $4,000. Annual utilities and maintenance expenses total $2,000, and depreciation expense is $4,500. Calculate Sherry's deductible depreciation, the net income or loss from the vacation home, and the loss carryforward, if any. Base allocation on number months, rather than days. If your answer value is zero, enter " 0 ". Feedback r Chack My Work Many taxpayers own residences which they use personally as part-year residences and rent during the remainder of the year, Such part-year rental properties are often referred to as "vacation homes." The tax law limits the deduction of expenses associated with the rental of vacation homes. If the residence is rented for 15 days or more and is used for personal purposes for more than 14 days or 10 percent of the days rented, whichever is greater, allocable rental expenses are allowed only to the extent of rental income. Allocable rental expenses are deducted in three separate steps. Expenses are allocated between the rental and personal days before the limits are applied. The IRS requires that the allocation be on the basis of the total days of rental use or personal use divided by the total days of use