10, Dec 2020
Federal Income Tax – ACF1466

During 2020, Payne rented his vacation home for 80 days and used it personally for 10 days.
Gross rental income from the property was $12,000 and Payne incurred the following expenses:
Advertising 1,000
Mortgage interest 5,000
Real estate taxes 3,000
Utilities & Maintenance 2,000
Depreciation 4,000
Using the IRS approach, calculate Payne’s total Sch E income / (loss) and the amount that he can deduct on his Sch A for 2020.