Question

1254 lark for follovw up stion 41 of 75. a replaced a broken heating and alr conditioning unit in one of her rental houses. How will this expense be reported on Schedule E? (She will NOT make the safe harbor election for small taxpeyers.) As a repair, deducted as a curent expense. As an Improvement, depreciated over 15 years. As an improvement, depreciated over 27 1/2 years As en improvement, depreciated over 31 1/2 yearn Mark for follow up uestion 42 of 75. very year, a college basketbal tournament is held in Bridget's city. She rents out her co Profussional. how do you report this income? kam duurlng the week.long tournament while she goes out of town on vacation. She receives $1.350 rental income for the The income and expenses are reported on Schedule E. The incoma la reported on Schedule E but no expenses are alowed, because Bridot is the renial besiness The income is reported on the Other Income section of Form 1040. and rental expense the ancunt of income, are deducted on Schedule A WThe ceme la not reported because the property is her personal residence and was ren ad k dewer than 15 days a Kapersky Secure C Mark for folow up O Kaspersky lInternet Security Don't want to leave Internet? Applications detected that you rarely une Secure your connecte Quastion 43 of 75.

Answer 1

41. Option C. As an improvement, depreciated over 27 1/2 Years.

Since she bought a new asset, and it increases the useful life and efficiency, the purchase is treated as an improvement.

42. Option D. The income is not reported because the property was rented for fewer than 15 day.

Under the VACATION HOME AND RENTAL PROPERTY rule 280(A)(g), the home can be let out for rent for less than 15 days and such income is not included in the gross income of under section 61.