which of the following statements is true regarding vacation homes? a if the rental is rented...
which of the following statements is true regarding vacation homes?
a if the rental is rented for 14 days or less during the year no income is included and none of the expenses deductible expect those that deductible on schedule A
b if the rental is rented for 14 days or less during the year taxes and interest must be prorated and the nonrental days expenses are deductible
c renting to relative for fair market rental is personal use and therefore is not deductible
d the vacation home rules apply if the building is rented for 12 consecutive months and there was significant personal use before and after the rental
Homework Answers
Option a.
if the rental is rented for 14 days or less during the year no income is included and none of the expenses deductible expect those that deductible on schedule A
Explanation:
a. if home or dwelling unit is rented for fewer than 15 days neither rent nor rental expenses are to be included in the calculation of taxable income
b.Only property taxes and mortgage interest will be available for deduction and not other expense will be available for deduction
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