Martha rents part of her personal residence in the summer for three weeks for $3,000.Anne rents all of her personal residence for one week in December for $2,500.Anne is not required to include the $2,500 in her gross income whereas Martha is required to include the $3,000 in her gross income.

Question

Quizplus · Accepted Answer

Martha's rental of part of her personal residence in the summer is considered rental income and should be included in her gross income, while Anne's rental of her entire personal residence for one week in December qualifies for the rental exclusion because it is rented out for less than 15 days in the year. Therefore, Anne is not required to include the $2,500 rental income in her gross income.

Martha Rents Part of Her Personal Residence in the Summer