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