2. John owns a second home in Palm Springs, CA. During the year he rented the house for $4,000 for 30 days and used the house for 10 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included

$5,000 in mortgage interest, $600 in property taxes, $900 for utilities and maintenance, and $3,500 of depreciation. What is John’s deductible rental loss, before considering the passive loss limitations?

a. $200

b. $875

c. $1,600

d. $3,500

e. $0 LO 3.2