The applicable percentage that he should use for deducting mortgage interest and real estate tax expenses on his Schedule E is 32.24%.
Under the Tax Court method, Eric can deduct the mortgage interest and real estate taxes equivalent to the number of days the property was rented divided by the total number of the days in the year.
Here the property has been rented for 118 days out of the total 366 days in a year(leap year-2020).
The deductible percentage:
(No of days rented / No of days in a year)*100
=(118 days /366 days)*100
=32.24%
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