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

Question

Quizplus · Accepted Answer

This is correct, as per IRS guidelines. The expenses that can be allocated include mortgage interest, property taxes, insurance, utilities, and repairs. The allocation is based on the proportion of days the home is used for rental purposes versus personal use.

Taxpayers Who Use a Home for Both Personal and Rental