Billy rented his vacation home during the year for three monts and he spent one month there (assume 30 day months). Gross rental income from the property was $6,500. Billy incurred the following expenses: Mortgage interest $3,000; real estate taxes $1,500; utilitities $600; repairs $1,800; depreciation $4,000

Assume you are a tax accountant and calculate for Billy what he needs to report on his tax return.

Please show your entire calculation