Misty and Jason rented out their lake house for five days and were paid $800.Assuming this is their only rental income and they are in the 28 percent marginal tax bracket,their tax liability on this $800 would be

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The correct answer is D) $0. This is because the IRS allows homeowners to rent out their property for up to 14 days per year without having to report the income on their tax return. Since Misty and Jason rented out their lake house for only five days, they do not have to report this income or pay taxes on it.

Misty and Jason Rented Out Their Lake House for Five