Question

Which of the following situations do not count as days of personal use by the owner of rental property?

a.       The taxpayer stays at the house for 10 days while making repairs to the property.

b.      The taxpayer's sister pays a fair rental price to rent the property for 10 days during the year.

c.       The taxpayer donates a week of use to a qualified charitable organization.

d.      All of the above count as days of personal use.

e.       None of the above count as days of personal use.

Answer 1

ANSWER

As per the given question,

OPTION -D is correct

All of the above count as days of personal use.

EXPLANATION

Dwelling Unit

A dwelling unit includes a house, apartment, condominium, mobile home, boat, vacation home, or similar property. It also includes all structures or other property belonging to the dwelling unit. A dwelling unit has basic living accommodations, such as sleeping space, a toilet, and cooking facilities.

A dwelling unit does not include property used solely as a hotel, motel, inn, or similar establishment. Property is used solely as a hotel, motel, inn, or similar establishment if it is regularly available for occupancy by paying customers and is not used by an owner as a home during the year.

If you use the dwelling unit as a home and you rent it less than 15 days during the year, that period is not treated as rental activity

You use a dwelling unit as a home during the tax year if you use it for personal purposes more than the greater of:

1. 14 days, or

2. 10% of the total days it is rented to others at a fair rental price.

Personal use

1. You or any other person who has an interest in the unit, unless you rent it to another owner as his or her main home under a shared equity financing agreement (defined later). However, see Days used as a main home before or after renting, later.

2. A member of your family or a member of the family of any other person who owns an interest in the unit, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. Family includes only your spouse, brothers and sisters, half-brothers and half-sisters, ancestors (parents, grandparents, etc.), and lineal descendants (children, grandchildren, etc.).

3. Anyone under an arrangement that lets you use some other dwelling unit.

4. Anyone at less than a fair rental price.

In the given example,

the place is given on rent to parents for 14 days at fair rental value

Given on rent to a friend less than fair rental price

the person himself stays

Under the circumstances what is stated above, the dwelling unit is used for personal use

KINDLY RATE