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Problem : Rental Income and Expenses (LO 4.7)
Sherry rents her vacation home for 6
months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $950, and interest on the home mortgage is $3,000. Annual utilities and maintenance expenses total $1,800, and depreciation expense is $4,500.
Calculate Sherry's net income (or loss) from the vacation home for this tax year.
Base allocation on number months, rather than days.
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