Jorge is a single individual aged 42 and had the following income and expenses during 2016:

Income:

Salary

43,000

Rental of a vacation home (rented

60 days, used 60 days and

vacant 245 days)

4,000

Local municipal bond interest

2,000

Dividend from Apple, Inc.

400

Expenses:

Interest on home mortgage

8,400

Interest on vacation home mortgage

4,758

Interest on loan used to buy local municipal bonds

3,100

Property tax

es on home

2,20

0

Property taxes on vacation home

1,098

State income taxes withheld from salary

3,300

State sales tax

900

Charitable contributions

1,100

Tax return preparation fees

300

Utilities and maintenance on vacation home

2,600

De

preciation on rental portion of vacation home

3,500

Calculate Jorge's taxable income for the year bef

ore personal exemptions. If Jorge

has any options, choose the

method that maximizes his deductions.