Problem 6-49 (LO. 3)

During the year (not a leap year), Anna rented her vacation home for 87 days, used it personally for 13 days, and left it vacant for 265 days. Use the IRSs method of allocating property taxes and interest. She had the following income and expenses:

Rent income	$7,000
Expenses
Real estate taxes	2,500
Interest on mortgage	9,000
Utilities	2,400
Repairs	1,000
Roof replacement (a capital expenditure)	12,000
Depreciation	7,500

If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Assume 365 days in a year.

a. Is her vacation home classified as rental property?

YesNo

b. Compute the following regarding the rental use of the property:

Gross income:	$fill in the blank 2
Total expenses:	$fill in the blank 3

c. Anna has a

net rental incomenet rental loss

of $fill in the blank 5 this year.

d. What amount of the real estate taxes can Anna deduct as an itemized deduction? $fill in the blank 6

e. What amount of the mortgage interest can Anna deduct as an itemized deduction? $fill in the blank 7