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John has a vacation condo in the Florida Keys that he rented out for two weeks in December for $250 a day. John has used

John has a vacation condo in the Florida Keys that he rented out for two weeks in December for $250 a day. John has used this vacation home himself for a total of three weeks during the year. His total ( unallocated) expenses for the condo are

Taxes: $1,500

Insurance: $2000

Repairs and maintenance: $1,100

Interest: $4,500

Depreciation for the year: $1,000

John received a call from his tenants and they want to extend their rental of the condo for another week. John is in the 35 percent marginal tax bracket. What tax factors should John consider in making the decision to extend the rental of the condo?

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