Rachel owns a vacation condo in Colorado.During the year she rented it for 14 days for $2,800.Rachel and her family members used the condo for 65 days during the year and it was vacant the rest of the year.The total expenses for the year were: $8,000 interest expense, $2,000 property taxes, and $1,800 utilities.How much net rental income must Rachel report on her tax return for the year?

Question

Quizplus · Accepted Answer

Since Rachel rented the condo for less than 15 days during the year, the income does not need to be reported on her tax return according to IRS rules for short-term rentals.

Rachel Owns a Vacation Condo in Colorado