Lester Rents His Vacation Home for 6 Months and Lives

Lester rents his vacation home for 6 months and lives in the home during the other 6 months of 2016. 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