Ola owns a cottage at the beach. She and her family use the property for 30 days during the summer season and to unrelated parties for 60 days. The rental receipts amount to $8,000. Total costs of operating the property are as follows: In addition, potential depreciation expense is $9,000.
a. Is the cottage subject to the vacation home rental limitations of IRC Sec. 280A?
b. How much of expenses can Ola deduct?

Question

Ola owns a cottage at the beach. She and her family use the property for 30 days during the summer season and to unrelated parties for 60 days. The rental receipts amount to $8,000. Total costs of operating the property are as follows:  In addition, potential depreciation expense is $9,000.
a. Is the cottage subject to the vacation home rental limitations of IRC Sec. 280A?
b. How much of expenses can Ola deduct?

Quizplus · Accepted Answer

The Answer of Ola owns a cottage at the beach. She and her family use the property for 30 days during the summer season and to unrelated parties for 60 days. The rental receipts amount to $8,000. Total costs of operating the property are as follows:  In addition, potential depreciation expense is $9,000.
a. Is the cottage subject to the vacation home rental limitations of IRC Sec. 280A?
b. How much of expenses can Ola deduct?

Ola Owns a Cottage at the Beach