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 2013 is $7,200.The expenses attributable to the vacation home for the entire year are as follows: $$\begin{array} { l r }
\text { Real estate taxes } & \$ 2,000 \
\text { Interest on mortgage loan } & \$ 4,000 \
\text { Utilities } & \$ 1,200 \
\text { Repairs/maintenance } & \$ 600 \
\text { Depreciation } & \$ 3,500
\end{array}$$ What amount would Donald report as net income or loss from the rental of the vacation home?

Question

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 2013 is $7,200.The expenses attributable to the vacation home for the entire year are as follows: $$\begin{array} { l r } 
\text { Real estate taxes } & \$ 2,000 \
\text { Interest on mortgage loan } & \$ 4,000 \
\text { Utilities } & \$ 1,200 \
\text { Repairs/maintenance } & \$ 600 \
\text { Depreciation } & \$ 3,500
\end{array}$$ What amount would Donald report as net income or loss from the rental of the vacation home?

Quizplus · Accepted Answer

The Answer of 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 2013 is $7,200.The expenses attributable to the vacation home for the entire year are as follows: $$\begin{array} { l r } 
\text { Real estate taxes } & \$ 2,000 \
\text { Interest on mortgage loan } & \$ 4,000 \
\text { Utilities } & \$ 1,200 \
\text { Repairs/maintenance } & \$ 600 \
\text { Depreciation } & \$ 3,500
\end{array}$$ What amount would Donald report as net income or loss from the rental of the vacation home?

Donald Rents Out His Vacation Home for 9 Months and Lives