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John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56 days and used the house
John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56 days and used the house for 14 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included $5,000 in mortgage interest, $850 in property taxes, $900 for utilities and maintenance, and $3,500 of depreciation. What is John's deductible rental loss, before considering the passive loss limitations?
a.$3,200
b.$2,500
c.$200
d.$875
e.$0
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