What is the Tax Court method of allocating rental property expenses? A) All expe

Question

What is the Tax Court method of allocating rental property expenses?

A) All expenses allocated as a percentage of rental-use days to total days owned.

B) All expenses allocated as a percentage of rental-use days to days used for all purposes.

C) Mortgage interest, qualified mortgage insurance premiums, real estate taxes, and casualty losses allocated as a percentage of rental-use days to total days owned during the year.

D) Mortgage interest and real estate taxes allocated as percentage of rental-use days to total days used.

Explanation / Answer

Under Tax Court method of allocating rental property expenses, Mortgage interest, qualified mortgage insurance premiums, real estate taxes, and casualty losses allocated as a percentage of rental-use days to total days owned during the year.

Option (C) is correct answer.

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