John owns a house that he rents out for $1,000 per month. His expenses for the 2021 tax year are as follows: Real estate

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John Owns A House That He Rents Out For 1 000 Per Month His Expenses For The 2021 Tax Year Are As Follows Real Estate 1 (292.86 KiB) Viewed 31 times

John owns a house that he rents out for $1,000 per month. His expenses for the 2021 tax year are as follows: Real estate taxes $1,300 Mortgage interest 4,400 Insurance 600 General repairs 640 John bought the property in September of 2010, and his basis for depreciation on the house is $137,500. He uses straight-line depreciation with a 27 16-year life, so the depreciation on the house is $5,000. John does not use a property manager and handle fall aspects of the rental activity himself. 2. Calculate John's net income or loss from renting the house iſ his gross rental income is $12.000 ($1,000 x 12 months). Is the income or loss on John's rental considered to be active, passive, or portfolio income?