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John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 42

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John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 42 days and used the house for 14 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included $5,000 in mortgage interest, $600 in property taxes, $900 for utilities and maintenance, and $3,500 of depreciation. What is John’s deductible rental loss, before considering the passive loss limitations?

a. $200
b. $875
c. $2,500
d. $3,200
e. $0

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Related Book For  answer-question
Income Tax Fundamentals 2017

Income Tax Fundamentals 2017

ISBN: 9781305872738

35th Edition

Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller

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Question Details
Chapter # 4
Section: Multiple Choice Questions
Problem: 2
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Question Posted: August 24, 2023 02:45:54
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