1. Sally keeps records for her rental property in the computer on the desk in her bedroom. She

saves receipts in a file stored in the desk's file drawer. She uses the computer for personal

use as well as for her job with the state. On which form will Sally deduct her office-in-home

expenses?

a) The office-in-home worksheet

b) Form 8829

c) Schedule A

d) Sally is not eligible to deduct office-in-home expenses.

2. Joan was given a temporary assignment in June that would take her away from home until

December 23rd. She decided to rent her house for the six months she would be gone. Joan's

best friend, Jean, had a daughter, Annie, who just graduated from college and was looking for

a place to rent until December. Since her house was completely paid for, Joan decided not to

rent the house at fair market rental value. Joan charged Jean's daughter, Annie, just enough

rent to pay the utilities each month. Where should Joan report the income she received from

renting the house?

a) Schedule E, line 3

b) Form 1040, line 21

c) Schedule C, line 1

d) Joan does not have to report the rental income.

3. Sadie rents three vacation homes in various locations and always has at least one of the

houses available for rent. She manages and maintains the properties herself and performs no

services for her tenants. What form should Sadie use to report her rental income and

expenses?

a) Schedule E

b) Form 1040 (line 21)

c) Schedule C

d) Sadie does not have to report the rental income.