Robyn rents her beach house for 60 days and uses it for personal use for 30 days during the year. The rental income is $6,000 and the expenses are as follows:
$\begin{array}{lr}
\text { Mortgage interest } & \$ 9,000 \
\text { Real estate taxes } & 3,000 \
\text { Utilities } & 2,000 \
\text { Maintenance } & 1,000 \
\text { Insurance } & 500 \
\text { Depreciation (rental part) } & 4,000
\end{array}$
Using the IRS approach, total expenses that Robyn can deduct on her tax return associated with the beach house are:

Question

Quizplus · Accepted Answer

The IRS approach allows Robyn to deduct expenses associated with the rental portion of the beach house. The rental portion is 60 days / (60 days + 30 days) = 66.67%. Therefore, the deductible expenses are:Mortgage interest: $9,000 x 66.67% = $6,000Real estate taxes: $3,000 x 66.67% = $2,000Utilities: $2,000 x 66.67% = $1,333Maintenance: $1,000 x 66.67% = $667Insurance: $500 x 66.67% = $333Depreciation: $4,000 x 66.67% = $2,667Total deductible expenses: $6,000 + $2,000 + $1,333 + $667 + $333 + $2,667 = $12,000

Robyn Rents Her Beach House for 60 Days and Uses