Mario owns a home in Park City,Utah,that he rented for $1,600 for three weeks during the summer.He lived there for a total of 120 days and the rest of the year the house was vacant.The expenses for the home included $6,000 in mortgage interest,$900 in property taxes,$1,300 in maintenance and utilities,and $3,500 in depreciation.How much net rental income or loss from the Park City home would Mario report for the current year? Use the IRS method for allocating expenses.

Question

Quizplus · Accepted Answer

Since Mario rented the home for less than 15 days, the IRS considers it a personal residence, and he does not need to report the rental income or allocate expenses for tax purposes.

Mario Owns a Home in Park City,Utah,that He Rented for $1,600