If a residence is used primarily for personal use (rented for fewer than 15 days per year), which of the following is correct?
A) No income is included in AGI.
B) No expenses are deductible.
C) Expenses must be allocated between rental and personal use.
D) Only a. and b. are correct.
E) a., b., and c. are correct.

Question

Quizplus · Accepted Answer

If a residence is used primarily for personal use (rented for fewer than 15 days per year), no income is included in AGI. Since no income is earned, no expenses are deductible either. Expenses do not need to be allocated between rental and personal use since there is no rental income to allocate expenses against.

If a Residence Is Used Primarily for Personal Use (Rented