Selma owns a beach cottage that she rents to tourists. In the current year she rented the cottage for 90 days. What is the maximum number of days Selma can use the cottage before her expense deduction will be limited to her gross rental income?

Question

Quizplus · Accepted Answer

According to IRS rules, if Selma uses the cottage for more than 14 days or more than 10% of the total days it is rented out (whichever is greater), her expense deduction will be limited to her gross rental income. Since Selma rented the cottage for 90 days, the maximum number of days she can use it without triggering this limitation is 14 days. Therefore, the correct answer is C (14 days).

Selma Owns a Beach Cottage That She Rents to Tourists