Last year, Beowulf purchased a condominium in San Antonio, Texas. In the current year, Beowulf and his family used the condominium for a total of 34 days. The condominium was rented out for a total of 98 days during the year, generating $19,650 of rental income. Harvey incurred the following expenses in the current year:

Property taxes $6,795

Mortgage interest 16,110

Insurance 1,240

Utilities 5,970

Depreciation 12,050

a. Determine and show all of Beowulf's deductible expenses using the Tax Court approach (including those on Schedule A).

b. How much depreciation can be deducted in the current year if the rental income was $23,630?

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Part a According to tax court method the amount dedu... View the full answer