During the year, Martin rented his vacation home for three months and spent one month there personally. Gross rental income from the property was $5,000. Martin incurred the following expenses, mortgage interest of $5,000, real estate taxes of $3,000, utilities of $800, maintenance of $500, and depreciation of $4,000. Assume he has a salary of $50,000 and his single. Calculate his taxable income.

Now assume the vacation home is rented for 10 days, and used personally for two months. Martin also now has $7,000 of state income tax withheld. Again calculate his taxable income.