Charles and sarah own a home in palm springs, ca. during the year, they rented the house for 40 days for $5,000 and used it for personal use for 18 days. the house remained vacant for the remainder of the year. the expenses for the house included $16,000 in mortgage interest, $4,500 in property taxes, $1,000 in utilities, $1,200 in maintenance, and $9,800 in depreciation. what is the deductible loss for the rental of their home (without considering the passive loss limitation)? use the tax court method for allocation of expenses.

a.$0
b. $5,000 net income
c. $17,414 net loss
d. $27,500 net loss

Option (c) is correct.

Explanation:

Total expenses:

= mortgage interest + property tax + utilities and maintenance + Depreciation expense

= $16,000 + $4,500 + ($1,000 + $1,200) + $9,800

= $32,500

Proportionate rental expenses = $32,500 × 40 days ÷ (40 days + 18 days)

                                                    = $22,414

Rental Loss = Rental income - Proportionate rental expenses

                    = $5,000 - $22,414

                    = -$17,414

according to the song of roland, the characteristics of an ideal knight are: loyalty to the king, skilled warriors and horseman, valiant, bold, courageous, strong and proud in battle. they should be determined to fulfil their duties and willing to die to make their people safe.

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