Eduardo purchased a vacation house on May 1, 2020. During 2021, he spent 20 days there, and rented it at fair rental price for 183 days. The house was vacant for the remainder of the year. If Eduardo uses the Tax Court method, what is the applicable percentage he should use for deducting mortgage interest and real estate tax expenses on his Schedule E? (a) 5.48% (b) 44.66% (c) 50.14% (d) 55.60%

Eduardo purchased a vacation house on May 1, 2020. During 2021, he spent 20 days there, and rented it at fair rental price for 183 days. The house was vacant for the remainder of the year. If Eduardo uses the Tax Court method, what is the applicable percentage he should use for deducting mortgage interest and real estate tax expenses on his Schedule E? (a) 5.48% (b) 44.66% (c) 50.14% (d) 55.60%

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 60P

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