Lynn and Bruce own a vacation cottage on the lakeside. They rented the cottage last year for 60 days, and used it
for themselves and their family for 30 days. They had the following income and expenses for the cottage.
Rental Income $22,000
Real Estate Taxes $6,000
Mortgage Interest Paid $9,000
Mortgage Principal Repaid $5,000
Electric, Phone, gas $4,000
Homeowners Assn. Fees $1,000
For real estate taxes and mortgage interest, there are two alternative approaches on how to allocate these, the "tax court approach" and the "IRS approach". Using the "IRS approach", what are the total expenses that they can deduct related to the lakeside cottage rental?
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