Emil Gow owns a two-family house that has two identical apartments. Gow lives in one apartment and rents out the other. In 2007, the rental apartment was fully occupied and Gow received $7,200 in rent. During the year ended December 31, 2007, Gow paid the following:
|
Real estate taxes |
$6,400 |
|
Painting of rental apartment |
800 |
|
Annual fire insurance premium |
600 |
In 2007, depreciation for the entire house was determined to be $5,000. What amount should Gow include in his adjusted gross income for 2007?
- $2,900
- $ 800
- $ 400
- $ 100