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 taxes on home 2,200

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

Depreciation on rental portion of vacation home 3,500

Calculate Jorges taxable income for the year. If Jorge has any options, choose the method that maximizes his deductions.