When allocating expenses of a vacation home between personal use and rental use, the amount of depreciation expense allocated to the rental use is based on the number of rental days over rental days plus personal use days.

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The statement is true. Depreciation expense for a vacation home is allocated between personal use and rental use based on the number of days the property was used for each purpose. The rental use portion of depreciation expense is calculated as the number of rental days divided by the total number of days the property was used (both rental and personal use).

When Allocating Expenses of a Vacation Home Between Personal Use