Mario, who is single and elects to itemize, rents his mountain house for $210$ days and uses it for personal use for $25$ days during the year, not a leap year. Income and expenses associated with the property are:

Rental income

Mortgage interest payments

Property tax payments

Depreciation

Utility payments

Maintenance payments

$ $24,000$

$12,000$

$8,000$

$7,000$

$5,000$

$4,000$

If Mario is allowed a choice, Mario would choose to use the court approach to allocating mortgage interest and property taxes. Determine the amount of expense that Mario would deduct from AGI on his current year tax return associated with the mountain house.

 

Answer rating: 100% (QA)

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