Question: During the current year, Katrina incurs the following expenses with respect to her beachfront condominium in Hawaii: Insurance $440
Repairs and maintenance 660
Interest on mortgage 4,000
Property taxes 1,800
Utilities 1,600
In addition to the expenses listed above, Katrina could have deducted a total of $8,600 depreciation if the property had been acquired only for investment purposes. During the year, Katrina uses the condominium 80 days for vacation. She also rents it out for a total of 240 days during the year, generating a total gross income of $8,000.
1. What is Katrina's net income from her vacation home calculated on Schedule E?
2. What deductions may Katrina take from AGI on Schedule A?