During the year, Tom rented his vacation home for 3 months and spent 10 days there. (Assume 30-day months.) Gross rental income from the property was $12,000. Tom incurred the following expenses:

mortgage interest, $4,000;

real estate taxes, $1,600

utilities, $600

repairs, $1,800

depreciation, $8,000. a. What is Martins rental income less allowable deductions? b. Would Martin have any deductions allowable for carryover to future years? c. What could Martin have done to change your answer to (b)?

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