Using 2019 IRS forms and the information below, William is 53 and Joyce is 51. They are married. William is a manager for ABC Corporation, a firm that manufactures and distributes widgets. Joyce is a self-employed author of childrens books. The taxpayer wish to minimize their tax by deferring income and accelerating deductions when possible.

1. In January, William inherited his fathers summer home that had a fair market value of $500,000 at the date of his fathers death. His parents had purchased the house many years ago for $100,000, 20% of which was attributable to the land and made $75,000 worth of capital improvements to it. William decides to rent the property and actively participates in finding a tenant and managing the property. The property is first advertised for rent on January 1, but is not rented until June 1. William provides the following income and expense information for the property: Rent $20,000 Repairs $5,000 Property taxes $10,000 Insurance $2,000

Calculate the amount of tax can be deducted