In the current year, Marnie rented her vacation home for 75 days, used it for personal reasons for 22 days, and left it vacant for the remainder of the year. Her income and expenses are as follows: What is Marnie's net income or loss from the activity? Use the Tax Court method.
(Round your answer to the nearest whole dollar)

Question

In the current year, Marnie rented her vacation home for 75 days, used it for personal reasons for 22 days, and left it vacant for the remainder of the year. Her income and expenses are as follows:  What is Marnie's net income or loss from the activity? Use the Tax Court method.
(Round your answer to the nearest whole dollar)

Quizplus · Accepted Answer

Using the Tax Court method, Marnie's rental expenses are allocated between personal use and rental use based on the number of days the property was used for each purpose. The rental income for the year is $18,000, and the rental expenses allocated to the rental use period are $6,877. Therefore, Marnie's net income from the activity is $11,123 ($18,000 - $6,877).

In the Current Year, Marnie Rented Her Vacation Home for 75