Problem $8-35($LO $8-2)$

In the current year, Sandra rented her vacation home for $75$ days, used it for personal use for $22$ days, and left it vacant for the remainder of the year. Her income and expenses before allocation are as follows:

Rental income$ $15,000$Real estate taxes$2,000$Utilities$1,500$Mortgage interest$3,800$Depreciation$7,200$Repairs and maintenance$1,300$

Required:

What is Sandra$$s net income or loss from the rental of her vacation home? Use the Tax Court method.

Kelvin owns and lives in a duplex. He rents the other unit for $$750$ per month. He incurs the following expenses during the current year for the entire property:

Mortgage interest$ $7,500$Property taxes$2,000$Utilities$1,500$Fixed light fixture in rental unit$100$Fixed dishwasher in personal unit$250$Painted entire exterior$1,300$Insurance$1,800$Depreciation $($entire structure$)7,000$

Required: