Chee, single, age 40, had the following income and expenses during 2017:

Calculate Chee's taxable income for the year before personal exemptions. If Chee has any options, choose the method that maximizes his deductions.

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Income $43,000 Salary Rental of vacation home (rented 60 days, used personally 60 days, vacant 245 days) Municipal bond interest 4,000 2,000 Dividend from General Electric 400 Expenses Interest on home mortgage 8,400 Interest on vacation home 4,758 Interest on loan used to buy municipal bonds 3,100 Property tax on home Property tax on vacation home $ 2,200 1,098 State income tax 3,300 State sales tax 900 Charitable contributions 1,100 Tax return preparation fee Utilities and maintenance on vacation home 300 2,600 Depreciation on rental portion of vacation home 3,500