James owns a home in Lake Tahoe, Nevada, that he rented for $5,100 for 40 days during the summer. He lived there for a total of 120 days, and the rest of the year, the house was vacant. The expenses for the home included $6,250 in mortgage interest, $1,000 in property taxes, $1,500 in maintenance and utilities, and $2,850 in depreciation. 

What is his net income or loss from the rental of his home (without considering the passive loss limitation)? Use the IRS method for allocation of expenses.

Answer rating: 100% (QA)

To calculate James net income or loss from the rental of his home we need to determine the rental in... View the full answer