In the current year,Marnie rented her vacation home for 75 days,used it for personal reasons for 22 days,and left it vacant for the remainder of the year.Her income and expenses are as follows: What is Marnie's net income or loss from the activity? Use the Tax Court method. (Round your answer to the nearest whole dollar)

Question

In the current year,Marnie rented her vacation home for 75 days,used it for personal reasons for 22 days,and left it vacant for the remainder of the year.Her income and expenses are as follows:  What is Marnie's net income or loss from the activity? Use the Tax Court method. (Round your answer to the nearest whole dollar)

Quizplus · Accepted Answer

According to the Tax Court method, Marnie's rental expenses are limited to the rental income she received ($34,500). This means she cannot claim a loss on her rental activity. Her rental income minus rental expenses (including depreciation) is $11,123, which is her net income from the activity. Therefore, the correct answer is C) $11,123 net income.

In the Current Year,Marnie Rented Her Vacation Home for 75