Wally changed his home to rental use on August 1 of the current tax year. He paid his full annual property insurance premium in February. Which of the following is a true statement? a) He can only deduct as rental expenses those items normally billed monthly, such as utilities. b) He cannot deduct any amount for insurance in the current tax year since the full annual premium was paid in February. c) For depreciation purposes, he can treat the property as being placed in service on January 1 of the year following conversion to a rental. d) He can deduct the portion of all expenses for the property which applies to the part of the year the property was used or held for rental purposes.