5-75. Mike owns a house that he rents out for $1,000 per month. His expenses for the 2018 tax year are as follows: Real estate taxes $1,300 Mortgage interest 4,400 Insurance 600 General repairs 640 Mike bought the property in September of 2009, and his basis for depreciation on the house is $137,500. He uses straight-line depreciation with a 27 12-year life, so the depreciation on the house is $5,000. Mike does not use a property manager and handles all aspects of the rental activity himself. Calculate Mike's net income or loss from renting the house if his gross rental income is - $12,000 ($1,000 x 12 months). b. Is the income or loss on Mike's rental considered to be active, passive, or portfolio income