Answer:
$ 500
Step-by-step explanation:
Data provided:
Gross rental income from the home = $ 4,500
Real estate taxes for the year = $ 800
Interest per year = $ 3,000
Utilities and maintenance expenses = $ 2,200
Depreciation expense = $ 4,000
Now, for 6 months
Real estate taxes for the year = $ 800 × 0.5 = $ 400 (0.5 as the for half a year i.e 6 months)
Interest per year = $ 3,000 × 0.5 = $ 1500
Utilities and maintenance expenses = $ 2,200 × 0.5 = $ 1,100
Depreciation expense = $ 4,000 × 0.5 = $ 2,000
Thus,
Total expenses for 6 months = $ 400 + $ 1500 + $ 1,100 + $ 2,000 = $ 5000
Therefore,
Net loss from renting his vacation home = Total expenses - Gross income
or
Net loss from renting his vacation home = $ 5000 - $ 4500 = $ 500
