Jennifer owns a home that she rents for 364 days and uses for personal purposes for one day. Jennifer is required to allocate expenses associated with the home between rental and personal use.

Question

Quizplus · Accepted Answer

This is true according to IRS rules. Jennifer must allocate expenses between rental and personal use based on the number of days the home was rented out and the number of days it was used for personal purposes. This allocation affects the tax treatment of expenses such as mortgage interest, property taxes, and maintenance costs.

Jennifer Owns a Home That She Rents for 364 Days