Braxton owns a second home that he rents to others. During the year, he used the second home for 50 days for personal use and for 100 days for rental use. Assume that Braxton itemizes deductions and nonrental taxes do not exceed $10,000 by more than the real property taxes allocated to business use of the home. After allocating the home-related expenses between personal use and rental use, which of the following statements regarding the sequence of deductibility of the expenses allocated to the rental use is correct (assume taxpayer has no expenses to obtain tenants) ?
A) Depreciation expense, other expenses, property taxes and interest expense.
B) Other expenses, depreciation expense, property taxes and interest expense.
C) Property taxes and interest expense, depreciation expense, other expenses.
D) Other expenses, property taxes and interest expense, depreciation expense.
E) None of the choices are correct.
Correct Answer:
Verified
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