Arthur has a vacation home in Florida that he rents out periodically. He has the following expenses related to the vacation home for the tax year:

Rental income	$14,000
Less:
Allocated mortgage interest and property taxes	($5,000)
Allocated utilities and other expenses	($4,000)
Depreciation expense	($6,000)

Net rental loss ($1,000)

Number of days rented at fair market value = 147

Number of days Arthur used for personal use = 13

Arthur's adjusted gross income is $95,000. How would the rental income and expenses be treated on Arthur's federal income tax return?

No rental income or expenses will be reported.

B)

Interest expense and taxes and should be reported on Schedule A as an itemized deduction.

C)

A $1,000 loss should be reported on Schedule E.

D)

The $1,000 loss will be reduced due to Arthurs personal use.