Tom owns a ski chateau that he lived in for 4 weeks and rented to unrelated parties for 12 weeks during the current year. Tom's income and expenses related to the cabin were as follows: Rental income: $5,500, Maintenance: 3,500, Utilities: 1,700, Taxes: 810, Interest: 1,400, Depreciation: 5,200. What amount of depreciation may Tom deduct from rental income under the Bolton case?

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In the Bolton case the court ruled that deductions for depreciation on a dwelling unit used fo... View the full answer