Jack and Cheryl own a cabin near Copper Mountain, Colorado. During the year, Jack and Cheryl rent the cabin for 30 days to friends for $1,800. Jack and Cheryl use the cabin a total of 60 days during the year. After making the appropriate allocation of planned expenses between personal and rental use, the following rental loss was determined: How should Jack and Cheryl report the rental income and expenses for the forthcoming year? I. Only expenses up to the amount of $1,800 rental income may be deducted for the year. II. Only depreciation in the amount of $100 may be deducted. III. The amount of the disallowed depreciation deduction $300) can be carried forward. IV. Nothing needs to be reported.

Question

Jack and Cheryl own a cabin near Copper Mountain, Colorado. During the year, Jack and Cheryl rent the cabin for 30 days to friends for $1,800. Jack and Cheryl use the cabin a total of 60 days during the year. After making the appropriate allocation of planned expenses between personal and rental use, the following rental loss was determined:  How should Jack and Cheryl report the rental income and expenses for the forthcoming year? I. Only expenses up to the amount of $1,800 rental income may be deducted for the year. II. Only depreciation in the amount of $100 may be deducted. III. The amount of the disallowed depreciation deduction $300) can be carried forward. IV. Nothing needs to be reported.

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The Answer of Jack and Cheryl own a cabin near Copper Mountain, Colorado. During the year, Jack and Cheryl rent the cabin for 30 days to friends for $1,800. Jack and Cheryl use the cabin a total of 60 days during the year. After making the appropriate allocation of planned expenses between personal and rental use, the following rental loss was determined:  How should Jack and Cheryl report the rental income and expenses for the forthcoming year? I. Only expenses up to the amount of $1,800 rental income may be deducted for the year. II. Only depreciation in the amount of $100 may be deducted. III. The amount of the disallowed depreciation deduction $300) can be carried forward. IV. Nothing needs to be reported.

Jack and Cheryl Own a Cabin near Copper Mountain, Colorado