During the year Martin rented his vacation home for three months and spent one m

Question

During the year Martin rented his vacation home for three months and spent one month there. Gross rental income from the property was $5,000. martin incurred the following expenses: mortage interest $3,000, real estate taxes $1,500, utilities $800, maintenance $500, depreciation $4,000. Using the court's approach, compute Martin's allowable deductions for the vacation home.

a)$5,000 for AGI, $0 from AGI
b)$9,800 for AGI, $0 from AGI
c)$5,000 for AGI, $3,375 from AGI
d)$9,800 for AGI, $4,500 from AGI

Explanation / Answer

c)$5,000 for AGI, $3,375 from AGI

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