Lester rents his vacation home for 6 months and lives in the home during the other 6 months of 2018.The gross rental income from the home is $4,500.For the entire year, real estate taxes are $800, interest is $3,000, utilities and maintenance expenses are $2,200, and depreciation expense on the entire home would be $4,000.What is Lester's allowable net loss from renting his vacation home?
A) $5,500 loss
B) $3,000 loss
C) $500 loss
D) $250 loss
E) None of the above
Correct Answer:
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