John has a rental property that has rental income of $22,000 and operating expenses of Mortgage Interest of $8,000, Real Estate Taxes of $4,000, Insurance on the property of $2,000, Gardening Expenses...

John has a rental property that has rental income of $22,000 and operating expenses of Mortgage Interest of $8,000, Real Estate Taxes of $4,000, Insurance on the property of $2,000, Gardening Expenses of $1,000, Utilities of $3,000, Homeowner Association dues of $6,000 and Depreciation Expense of $4,000.

The property was rented for 133 days at fair market value and John had 7 personal use days of this property during the year. Calculate John’s net rental income/loss for the year. Round to the nearest decimal (i.e. 9.55% round to 10% and 9.45% round to 9%).

Show your calculations. If you feel that this is a vacation rental use the IRS Method.