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?