Expenses related to operating and maintaining the property, such as utilities.

The rental portion of qualified home mortgage interest, real estate taxes, and casualty losses.

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Question $54$ of $75.$

Nicki owns a small house at the lake. She used it as a vacation home most weekends during the year, but she occasionally

rented it out when she could not get away. Under what circumstances would Nicki be required to report this rental income on

her tax return?

She only needs to report the income if the amount of rent she received was equal to or greater than fair rental value for this type of

property.

She only needs to report the income if the number of days she rented the property exceed $10\%$ of the days she used it personally.

She only needs to report the income if she rented the house for $15$ days or more during the year.

No special rules apply. She must always report all the rental income received.

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Question $55$ of $75.$

Which of the following describes the IRS method of allocating expenses between rental use and personal use during the tax

year?

All rental expenses are allocated as a percentage of rental$-$use days to total days owned.

All rental expenses are allocated as a percentage of rental$-$use days to total days used.