Robyn rents her beach house for 60 days and uses it for personal use for 30 days during the year.The rental income is $6,000 and the expenses are as follows: Using the IRS approach, total expenses that Robyn can deduct on her tax return associated with the beach house are:

Question

Robyn rents her beach house for 60 days and uses it for personal use for 30 days during the year.The rental income is $6,000 and the expenses are as follows:  Using the IRS approach, total expenses that Robyn can deduct on her tax return associated with the beach house are:

Quizplus · Accepted Answer

According to the IRS approach, expenses related to a rental property can only be deducted up to the amount of rental income received. In this case, Robyn received $6,000 in rental income, so she can deduct up to that amount in expenses. The expenses listed add up to $8,000, which is more than the rental income, but Robyn can still only deduct up to $6,000, resulting in a deductible loss of $0. Therefore, the correct answer is D, $12,000.

Robyn Rents Her Beach House for 60 Days and Uses