Jeff loves the ocean. The sound of the waves, the salt in the air, the sand in his toes - all of it. As long as he could remember, he dreamed of having a place of his own near the beach. He assumed it was financially impossible, until someone suggested that he purchase a home and rent it out to others when he's not using it. It will pay for itself," he was told. And so It did. About eight years ago Jeff bought a condominium with an ocean view. He spends all of his vacation time there and rents the condo for the rest of the season. Every year, the rental income has been more than enough to cover the expenses of the condominium. But as the events of 2020 unfolded, Jeff was worried that he would be unable to maintain his beachside retreat. However, much to Jeff's surprise, he was able to rent the condo for 10 weeks during the summer (70 days), bringing in $12,000 of rental income. It turns out that people just wanted to get outside and feel normal, and the beach was the perfect place for that. Even Jeff made it to the beach this year. Once the travel bans were lifted, he headed straight to the beach and spent 7 peaceful days at the condo. Although the income was not as high as prior years. It was enough for Jeff to keep the place going. His expenses relating to the condo for 2020 were as follows:

Utilities: 5720 Insurance: $1.200

Cleaning $660

* Mortgage interest: $7.100

Real estate as $4.500

Depreciation: $2.200

1. Describe in detail the tax consequences of the above. Be specific as to amounts and the reasoning for such result

2. For each expense, indicate the amount that can be deducted and how such deduction will be classified

Disregard IRC 58 465 and 469 for this problem