Jane and Don own a ski chalet in Lake Tahoe,NV and rented it for 12 days for $8,000.The rest of the year,the chalet was used by them and their friends and family.What is the proper tax treatment of the $8,000?
A)Should be reported on Schedule E
B)None of the rental income is included in gross income
C)The amount should be reported on Schedule C
D)The amount should be reported as other income on Form 1040

Question

Quizplus · Accepted Answer

If a dwelling unit is rented out for fewer than 15 days during the year, the rental income is not included in gross income, and no deductions attributable to the rental use are allowed.

Jane and Don Own a Ski Chalet in Lake Tahoe,NV