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Question - John owns a second home in Palm Spings, CA. During the year, he rented the house for $5000 for 42 days and used the house for 14 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included $5000 in mortgage interest, $600 in property taxes, $900 for utilities and maintenance, and $3500 of depreciation. What is John's deductible rental loss, before considering the passive loss limitations?
a. $200
b. $875
c.$2500
d.$3200
e.$0
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