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Which Method Will You Likely Use if You Take the Standard Deduction, and Why? IRS METHOD...

Which Method Will You Likely Use if You Take the Standard Deduction, and Why? IRS METHOD OR TAX COURT METHOD?

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In case of a taxpayer who is taking the standard deduction, IRS method will likely be used by him, as it would prove to be more favourable due to higher deduction in the taxable income in comparison to court method ,which would be more advantageous if the taxpayer opts for itemized deductions. Under IRS method, the allocation of rental part of the real estate taxes and mortgage interest is done in the ratio of the total rental days to the total number of days the property was used for any purpose during the year. On the other hand, the Court method takes into account the ratio of days rented divided by the number of days in the year.

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