Sarah owns a vacation cabin in the Tennessee mountains. Without considering the 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, and maintenance; and $3,200 depreciation.

If an amount is zero, enter "0".

a. What effect does the rental of the vacation cabin have on Sarah's AGI?

Sarah reports rental income of ? and rental expenses of ? for AGI.

b. What expenses can Sarah deduct, and how are they classified (i.e., for or from AGI)?

Note: Assume that she itemizes her deductions.

a.	Utilities	$
b.	Insurance	$
c.	Property Taxes	$
d.	Mortgage interest	$
e.	Maintenance expenses	$