Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland. He resided in the home for the remainder of the year.

Rental income from the property was $6,500. Expenses associated with use of the home for the entire year were as follows:

Real property taxes $ 3,100 Mortgage interest 12,000 Repairs 1,500 Insurance 1,500 Utilities 3,900 Depreciation 13,000

a) What effect does the rental have on Dillon’s AGI?

b) What effect does the rental have on Dillon’s itemized deductions?

Use the following facts to answer problems 61 and 62.

Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

Insurance $1,000 Advertising expense 500 Mortgage interest 3,500 Property taxes 900 Repairs & maintenance 650 Utilities 950 Depreciation 8,500 During the year, Natalie rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation.