Question
Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year
Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $950, and interest on the home mortgage is $3,000. Annual utilities and maintenance expenses total $1,800, and depreciation expense is $4,500. Calculate Sherry's net income (or loss) from the vacation home for this tax year. If an amount is zero, enter "0". Base allocation on number months, rather than days. Rental income $ Expenses: Real estate taxes $ Mortgage interest Utilities and maintenance Depreciation Net rental income (loss) $
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