Question

Donald rents out his vacation home for 9 months and lives in his vacation home for...

Donald rents out his vacation home for 9 months and lives in his vacation home for the remainder of the year. His gross rental income for 2019 is $7,200. The expenses attributable to the vacation home for the entire year are as follows:

Real estate taxes

$2,000

Interest on mortgage loan

4,000

Utilities

1,200

Repairs/maintenance

600

Depreciation

3,500

What amount would Donald report as net income or loss from the rental of the vacation home?

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