ZuoTi.Pro
Question

h period oruzed ver a 180-T e. Not deductible 40. If a residence is used primarily for personal use (rented for fewer than 15
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer 40) Option D (Only a. and b. are correct)

IRS Rule

If you rent a house unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for more than the greater of:

  1. 14 days, or
  2. 10% of the total days you rent it to others at a fair rental price.

It's possible that you'll use more than one dwelling unit as a residence during the year. For example, if you live in your main home for 11 months, your home is a dwelling unit used as a residence. If you live in your vacation home for the other 30 days of the year, your vacation home is also a dwelling unit used as a residence unless you rent your vacation home to others at a fair rental value for 300 or more days during the year in this example.

A day of personal use of a dwelling unit is any day that it's used by:

  • You or any other person who has an interest in it, unless you rent your interest to another owner as his or her main home and the other owner pays a fair rental price under a shared equity financing agreement
  • A member of your family or of a family of any other person who has an interest in it, unless the family member uses it as his or her main home and pays a fair rental price
  • Anyone under an agreement that lets you use some other dwelling unit
  • Anyone at less than fair rental price
0 0
Add a comment
Know the answer?
Add Answer to:
h period oruzed ver a 180-T e. Not deductible 40. If a residence is used primarily...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 41. In January, Lance sold stock with a cost basis of 526,000 to his brother, James,...

    41. In January, Lance sold stock with a cost basis of 526,000 to his brother, James, for $24,000, the fair market value of the stock on the date of sale. Five months later, James sold the same stock through his broker for $27,000. What is the tax effect of these transactions? a. Disallowed loss to James of $2,000; gain to Lance of $1,000 b. Disallowed loss to Lance of $2,000; gain to James of $3.000. c. Deductible loss to Lance...

  • (The following information applies to the questions displayed below] Dillon rented his personal residence at Lake...

    (The following information applies to the questions displayed below] Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland. He resided in the home for the remainder of the year Rental income from the property was $6,500. Expenses associated with use of the home for the entire year were as follows: Real property taxes Mortgage interest Repairs Insurance Utilities Depreciation 3,100 12,080 1,500 1,500 3,989 13.000 Book Print erences Problem 6-37 Part a...

  • Question 8 (1 point) Sadie is a full time nurse and a part time painter. Her...

    Question 8 (1 point) Sadie is a full time nurse and a part time painter. Her painting qualifies as a hobby. Her gross income from painting is $7,000. Her expenses include $800 of interest on inventory loans, $5,200 of expenses in conducting business activities, and $2,000 of depreciation of equipment. Which of the following statements about Sadie's hobby activity is/are correct? Sadie will not recognize any taxable income as a result of her hobby. Sadie can deduct the interest of...

  • After the death of Lennie Pope, his will was read. It contained the following provisions: $165,000...

    After the death of Lennie Pope, his will was read. It contained the following provisions: $165,000 in cash goes to decedent’s brother, Ned Pope. Residence and other personal property go to his sister, Sue Pope. Proceeds from the sale of Ford stock go to uncle, Harwood Pope. $300,000 goes into a charitable remainder trust. All other estate assets are to be liquidated with the cash going to Victoria Jones. a. Prepare journal entries for the following transactions that subsequently occur:...

  • Please answer all the following questions. When you rent out your home for more than 14...

    Please answer all the following questions. When you rent out your home for more than 14 days per year, you have to declare your income and may have to pay taxes. However, it is not as bad as it sounds. This is because certain costs of running a home that would otherwise not be deductible, such as utilities and insurance, become partially deductible when the home is used to produce rental income. The textbook on page 14-18 (see PPTS below)...

  • Which of the following is/are requirements for a married couple to exclude $500,000 of gain from...

    Which of the following is/are requirements for a married couple to exclude $500,000 of gain from the sale of their residence? Only one spouse must meet the ownership requirement of two out of five years preceding the sale. Both spouses must have used the home as their principal residence in two out of five of the previous years prior to the sale date. Both spouses must have been legally married for two out of the five years immediately preceding the...

  • Include procedure 1. Brenda is a cash basis taxpayer with the following trans actions during her...

    Include procedure 1. Brenda is a cash basis taxpayer with the following trans actions during her calendar tax year Cash basis revenue Cash basis expenses, except rent Rent expense (paid on December 1) for use of a building for 6 months $54,000 25,000 12.000 What is the amount of Brenda's taxable income from her business for this tax year? $17,000 $23,000 $25,000 $27,000 None of the above. The answer is, A. В. C. D. E. 2. Ana is acalendaryear taxpayer...

  • 21. On February 12, 2015, Jon purchased stock in Pik Corporation (the stock is not small...

    21. On February 12, 2015, Jon purchased stock in Pik Corporation (the stock is not small business stock) for $2,000. On May 12, 2016, the stock became worthless. During 2016, John also had an $9,000 loss on § 1244 small business stock purchased two years ago, a $10,000 loss on a nonbusiness bad debt, and a $6,000 long-term capital gain. How should Jon treat these items on his 2016 tax return? a. $4,000 long-term capital loss and $9,000 short-term capital...

  • Travel expenses connected with overight travel for business while away from your tax home is deductible....

    Travel expenses connected with overight travel for business while away from your tax home is deductible. Your tax home is: Mat Choose one Answer. O a. Your family home b. The general area of your place of business c. Where you grew up. d. Where you finished school Which of the following is a taxable payment of alimony if it was ordered in the divorce decree? Choose one answer. a. A noncash property settlement b. Spouse's part of community income...

  • Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as...

    Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as a deductible medical expense? A. Cost of long-term care for a developmentally disabled person in a relative’s home. B. Special school for a deaf child to learn lip reading. C. Cost of elevator installed for individual who had heart bypass surgery (in excess of increase in value of individual’s home). D. Cost and care of guide dogs used by a blind person in his...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT