Answer: b. 10423

Calculations:

Period for which Home was rented at FRV= 214 days (122 days + 92 days)

Period for which Home was vacated or rented less than FRV= 151 days.

Proportionate Expenses for the period on which property was rented be only allowed:

Mortagage Interest + Real estate Taxes + Insurance + Repair and Maintenance

$ 9840+ $ 1950 + $ 760+ $ 1710

= $ 14268

Proportionate expense for 214 days= ($ 14268/ 365) Multiply 214 days

= $ 8323

Also utility expenses for the Mar-June; Sep- Dec exluding september month to be allowed for deductible as expense.

Total Utility expense= $ 2400

Total number of Months= 8 months

Per month utility expenses= $ 300

Therfore for Seven months (excluding september month)= it would be around $ 2100

Total deductibel expense= $ 8323 + $ 2100

$ 10423

Notes:

Following are the most common rental expenses:

. • Advertising. • Auto and travel expenses. • Cleaning and maintenance. • Commissions. • Depreciation. • Insurance. • Interest (other). • Legal and other professional fees. • Local transportation expenses. • Management fees. • Mortgage interest paid to banks, etc. • Points. • Rental payments. • Repairs. • Taxes. • Utilities.