What is the proper treatment of the rental income

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Matt and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (6 weeks) at $890 per week and used it for personal use for 58 days. The total costs of maintaining the home are as follows: Mortgage interest $4,200 Property taxes 700 Insurance 1,200 Utilities 3,200 Repairs 1,900 Depreciation 5,500 a. What is the proper tax treatment of this information on their tax return using the Tax Court method? b. Are there options available to allocate the expenses between personal and rental use? Explain. c. What is the proper tax treatment of the rental income and expenses if Matt and Marie rented the house for only 14 days?

Janet owns a home at the lake. She incurs the following expenses: Mortgage interest $1,300 Property taxes 800 Insurance 1,500 Utilities 1,800 Repairs 300 Depreciation 4,000

What is the proper treatment of the rental income and expenses in each of the following cases? Use the Tax Court allocation method, if applicable. Case Rental Income Days Rented Personal Use Days A 9,000 45 10 B 12,000 55 25 C 6,000 10 30 D 22,000 365 0

Reference no: EM13829283

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