T owns a two-bedroom vacation home that T rents for 90 days and uses for personal purposes for 30 days during the taxable year. T receives gross rental income from the home of $3,000, pays deductible property taxes of $1,000 and deductible mortgage interest of $1,000, and incurs other expenses (including $2,000 of depreciation) of $3,600. (a) Will T's deductions be limited by 183 or 280A? (b) What amount of expenses, other than property taxes and mortgage interest, may T deduct? (c) May T deduct all of T's property taxes and mortgage interest? Why or why not? (d) What result in part (a) above, if T rents the home for only three weeks and vacations in it with family for one week?

Answer rating: 100% (QA)

a Ts deductions will be limited by the 280A rules b T may deduct expenses other than property taxes ... View the full answer