h period oruzed ver a 180-T e. Not deductible 40. If a residence is used primarily for personal use (rented for fewer than 15 days per year), which of the following is correct? a. No income is included in AGI b. No expenses are deductible. c. Expenses must be allocated between rental and personal use d. Only a. and b. are correct. e. Choices a., b., and c. are correct. 41. In January, Lance sold stock with a cost basis of $26,000 to his brother, James, for $24,000, the fair market value of the stock on the date of sale. Five months later, James sold the same stock through his broker for $27,000. What is the tax effect of these transactions