If a vacation home is determined to be a personal/rental use residence, which of the following statements is correct?
A) All rental income is included in gross income.
B) All rental related expenses that are deductible are classified as deductions from AGI.
C) Expenses must be allocated between rental and personal use.
D) Only a. and c. are correct.
E) a., b., and c. are correct.

Question

Quizplus · Accepted Answer

If a vacation home is determined to be a personal/rental use residence, expenses must be allocated between rental and personal use (C). All rental income is included in gross income (A), and rental related expenses that are deductible are classified as deductions from AGI (B) are true for all rental properties, not just ones used for personal purposes.

If a Vacation Home Is Determined to Be a Personal/rental