If before Jim's heart attack, values were EDV=130 ml ESV= 50- ml what is his SV?
(But because it is a personal residence, the interest that doesn't count as a rental expense â 20% in our example â can be deducted as a personal expense.). If you limit personal use to 14 days or 10%, the vacation home is considered a business and up to $25,000 in losses might be deductible each year. That's why lots of vacation homeowners hold down leisure use and spend lots of time maintaining the property. Fix-up days don't count as personal use.
The IRS allows taxpayers to deduct home mortgage interest in the form of itemized deductions, which allows you to deduct your actual expenses instead of a set amount. When a married couple files separately and if one spouse itemizes, the other spouse also must itemize. If you and your spouse are filing separately and plan to itemize, you can split the mortgage interest expenses however you like as long as the combined deduction does not exceed the actual interest expense. Obtain two copies -- one for you and your spouse -- of Form 1040 and Schedule A from the IRS website.