Emil Gow owns a two-family house that has two identical apartments. Gow lives in one apartment and rents out the other. In 2015, the rental apartment was fully occupied and Gow received $7,200 in rent. During the year ended December 31, 2015, Gow paid the following.
- Real estate taxes - $6,400
- Painting of rental apartment - $800
Annual fire insurance premium - $600
In 2015, depreciation for the entire house was determined to be $5,000. What amount should Gow include in his adjusted gross income for 2015?
a. $2,900
b. $800
c. $400
d. $100
Answer: C
Tax
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