Taxpayers who use a vacation home for both personal and rental use generally must allocate expenses associated with the home to personal use and to rental use.

Question

Quizplus · Accepted Answer

This is true. Taxpayers must report both the rental income and the personal expenses associated with the vacation home. They must then allocate these expenses between the personal use and the rental use based on the number of days the property is used for each purpose.

Taxpayers Who Use a Vacation Home for Both Personal and Rental