Nikki is a single taxpayer who owns a vacation cottage on the lake.During the year,she rented it for $2,000 for 14 days,lived in it for 56 days,and left it vacant the remainder of the year.The year's expenses amounted to $5,000 interest expense,$800 property taxes,$1,500 utilities and maintenance,and $2,400 depreciation.Using the IRS method of allocating expenses,how much of the property-related expenses will be deductible for AGI?

Question

Quizplus · Accepted Answer

Since Nikki rented the property for less than 15 days, the rental income is not taxable, and the expenses related to the rental use are not deductible for AGI.

Nikki Is a Single Taxpayer Who Owns a Vacation Cottage