Working on Test: Exam 1-Chapter 1 to 4

Lester rents his vacation home for 6 months and lives in the home during the other 6 months of 2015. The gross rental income from the home is $4,500. For the entire year, real estate taxes are $800, interest is $3,000, utilities and maintenance expenses are $2,200, and depreciation expense on the entire home would be $4,000. What is Lester's allowable net loss from renting his vacation home?

A.	$5,500 loss
B.	$3,000 loss
C.	$500 loss
D.	$250 loss