Piper owns a vacation cabin in the Tennessee mountains. Without consideringthe cabin, she has gross income of $65,000. During the year, she rents the cabin for two weeks for $2,500 and uses it herself for four weeks. The total expenses for the year are $10,000 mortgage interest; $1,500 property tax; $2,000 utilities, insurance, andmaintenance; and $3,200 depreciation. What effect does the rental of the vacation cabin have on Pipers AGI? What expenses can Piper deduct, and how are they classified (i.e.,fororfromAGI)?

Adelene, who lives in a winter resort area, rented her personal residence for14 days while she was visiting Brussels. Rent income was $5,000. Related expenses for the year were as follows:

Real property taxes =$ 3,800

Mortgage interest =7,500

Utilities = 3,700

Insurance = 2,500

Repairs = 2,100

Depreciation = 15,000

Determine the effect on Adelenes AGI.