Test $-$ Intermediate Rental Real Estate $(2025)$

Schedule E

Elena owns a duplex with two equally sized units. She resides in one, and rents the other. She files as single and

Question $14$ of $15.$

In $2024,$ she paid $$5,000$ in real estate taxes for the entire duplex, $$6,500$ in state and local income taxes, and $$1,000$ in itemizes deductions.

To achieve the most favorable tax outcome, how should Elena's real estate taxes be reported on her return? personal property taxes.

Half the amount paid, $$2,500,$ should be deducted on Schedule $C,$ and the remaining $$2,500$ on Schedule $A.$ Half the amount paid, $$2,500,$ should be deducted on Schedule $E,$ and the remaining $$2,500$ on Schedule A$.$ The entire amount paid, $$5,000,$ should be deducted on Schedule A$.$

The entire amount paid, $$5,000,$ should be deducted on Schedule E$.$

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