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Sofia is a CPA in Salt Lake City and an avid skier. To make her skiing sessions more enjoyable, Sofia purchases a condo in Park

Sofia is a CPA in Salt Lake City and an avid skier. To make her skiing sessions more enjoyable, Sofia purchases a condo in Park City. She uses the condo 2 days a week for 6 weeks. She then rents it out for 108 days and is actively involved in managing the rental. The remainder of the year it remains vacant. She receives $20,000 in rental income, and total condo expenses for the year are $30,000. How does Sofia report this on her tax return? Assume Sofia's AGI is less than $100,000.
a. Sofia reports $20,000 income and $20,000 expense for a net $0 income or loss.
b. Sofia reports a $10,000 rental loss.
c. Sofia reports a $7,000 rental loss.
d. Sofia disregards the rental and reports nothing regarding the property.
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