Juan has a 3-floor building in Seattle that he bought in 2018. He rents out...

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Accounting

Juan has a 3-floor building in Seattle that he bought in 2018. He rents out the street-level floor to a caf. He lives on the second floor of the building. He rents out the top floor of the building as an apartment. Each floor has the same square-footage. The total Real-Property tax for the building in 2022 was $9,000. Can he take a deduction for this, and if so, where?

a. He can claim $3,000 on Schedule A, Itemized Deductions, and $6,000 on Schedule E, Rental Income and Expenses for the two rental units.

b. He can claim $9,000 on Schedule E, Rental Income and Expenses.

c. He can claim $3,000 on Schedule A, Itemized Deductions, and 6,000 on Schedule C, Profit and Loss for Business.

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