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[6] Mrs. R owns a beach cottage that she rented out for 3 months, lived in for 1 month, and tried unsuccessfully to rent for
[6] Mrs. R owns a beach cottage that she rented out for 3 months, lived in for 1 month, and tried unsuccessfully to rent for the rest of the year. Mrs. R received rental income of $5,600. Her total expenses for the cottage were as follows:
Interest Taxes Utilities Maintenance Depreciation
$3,000 1,800 1,500
900 2,400
What is Mrs. R's net rental income or loss to be reported on her income tax return?
A. $4,000 loss.
B. $800 income.
C. $0
D. $0 or $800 income.
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