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53. Isabel leaves her home every year at least two months in the summer to spend time at her cottage in New England. Sometimes she
53. Isabel leaves her home every year at least two months in the summer to spend time at her cottage in New England. Sometimes she rents out her home while she is gone, but never for more than 1 or 2 weeks. This year she rented her home for $125 a day for 13 days ($1,625). How should Isabel report this income on her tax return? a) File a Schedule E showing rental income of $1,625 and deduct applicable expenses. b) Do not include in income any of the rental income and no rental expenses are deductible. c) Include the net rental profit ($1,625 - expenses) on Form 1040, line 21. d) Deduct all rental expenses except depreciation
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