Recasto owns a second residence that is used for both personal and rental purposes. During 2005, Recasto used the second residence for 50 days and rented the residence to Louis fo 200 days. Which of the following statements is true?
A. Depreciation may not be deducted on property under any circumstances.
B. A rental loss may be deducted if rental-related expenses exceed rental income.
c. Utilities and maintance on the property must be divided between personal and rental use.
D. All mortgages interest and taxes on the property will be deducted to determine the property's net income or loss.