1) Mr. Sheldon rents his vacation home during the summer. In 2019, he used the home...
1) Mr. Sheldon rents his vacation home during the summer. In
2019, he used the home for 16 days and rented it for 11 days. The
total rental details are stated below:
Rental Income for 11 days- 1500
Allocated interest and taxes- (300)
Other allocated expenses- (100)
Net rental Income- 1,100
What is the right amount of net rental income to be included in Mr.
Sheldon's 2019 tax return?
Homework Answers
| According to tax laws, a vacation property can be rented out for 14 days each year without the need to report the rental income. In this case, the house is still considered a personal residence so the owner can deduct mortgage interest and property taxes on Schedule A under the standard second home rules. However, the owner cannot deduct any expenses as rental expenses. |
Net rental income to be included in Mr. Sheldon's 2019 tax
return = $0
But Mr. Sheldon can claim interest and taxes as usual homeowner's
deduction .
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