Carmen owns a house that she rents out for $500 per month.Her expenses for the 2013 tax year are as follows: $\begin{array}{ll}
\text { Real estate taxes } & \$ 900 \
\text { Mortgage interest } & \$ 4,000 \
\text { Insurance } & \$ 300 \
\text { General repairs } & \$ 320
\end{array}$ Carmen bought the property in March of 1990,and her basis for depreciation on the house is $110,000.She uses straight-line depreciation with a 27 ½ -year life,so the depreciation on the house is $4,000.
Calculate Carmen's net income or loss from renting the house if her gross rental income is $6,000 $500 x 12 months).

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The Answer of Carmen owns a house that she rents out for $500 per month.Her expenses for the 2013 tax year are as follows: $\begin{array}{ll}
\text { Real estate taxes } & \$ 900 \
\text { Mortgage interest } & \$ 4,000 \
\text { Insurance } & \$ 300 \
\text { General repairs } & \$ 320
\end{array}$ Carmen bought the property in March of 1990,and her basis for depreciation on the house is $110,000.She uses straight-line depreciation with a 27 ½ -year life,so the depreciation on the house is $4,000.
Calculate Carmen's net income or loss from renting the house if her gross rental income is $6,000 $500 x 12 months).

Carmen Owns a House That She Rents Out for $500