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

Using the IRS approach, the expenses deductible on the tax return for the beach house are calculated as follows:

Total expenses = (60/90) x ($9,000 + $1,000 + $1,500 + $500) 
Total expenses = (2/3) x $12,000 
Total expenses = $8,000

Therefore, the correct answer is D) $12,000.

Robyn Rents Her Beach House for 60 Days and Uses