on owns a condominium near Orlando, California. This year, he incurs the following expenses in connection with his condo:

Insurance	$	1,300
Mortgage interest		10,000
Property taxes		3,000
Repairs and maintenance		900
Utilities		2,200
Depreciation		12,000

During the year, Don rented the condo for 70 days and he received $17,400 of rental receipts. He did not use the condo at all for personal purposes during the year. Don is considered to be an active participant in the property. What is the net profit (loss) on the property? If his AGI is $140,000 and he had no passive income, is there a loss deduction on his tax return? How much, if any.

		17,400 net profit; -0- deduction
		(29,400) net loss; (5,000) loss deduction
		(5,000) net loss ; (5,000) loss deduction
		(12,000) net loss; (5,000) loss deduction