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 for AGI.
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

When a vacation home is used both personally and for rental purposes, rental income has to be included in gross income, and rental related expenses that are deductible are classified as deductions for AGI. Additionally, expenses must be allocated between rental and personal use. Therefore, options A, B, and C are all correct.

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