Alice rented her personal residence for 13 days to summer vacationers for $4,500. She has AGI of

Question:

Alice rented her personal residence for 13 days to summer vacationers for $4,500. She has AGI of $105,000, before the rental income. Related expenses for the year include the following:
Real property taxes……….….. $4,500
Utilities………………………… 5,000
Insurance………………………… 900
Mortgage interest…………….... 7,000
Repairs……………….………….. 800
Depreciation…………………. 15,000
Calculate the effect of the rental on Alice’s AGI. Explain your rationale, citing tax authority.