Response to the following :
1. Vacation Homes
a. What is the tax advantage to having a vacation home treated as a residence?
b. What is the disadvantage to having a vacation home considered a residence?
2. During the year, Carlin Barone (SSN 839-62-1444) rents his vacation home for 90 days and spends 60 days there. The vacation home is a townhome located at 610 Oak St. in Boulder, Colorado 80302. Gross rental income from the property totals $6,000. Carlin's expenses for the property are shown below. Using this information, complete Carlin Barone's Schedule E.
Mortgage interest $3,000
Real estate taxes 1,500
Utilities 800
Maintenance 900
Depreciation 4,000