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Its only 1 question, plz answer all 3 parts of question. Thank you Alicia and Marie own a vacation home at the beach. During the
Its only 1 question, plz answer all 3 parts of question. Thank you
Alicia and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (6 weeks) at $970 per week and used it for personal use for 58 days. The total costs of maintaining the home are as follows: Requlred: a. What is the proper tax treatment of this information on their tax return using the Tax Court method? Note: Use 365 days In a year. Round your Intermedlete computetlons to 5 declmal pleces and flnal answers to nearest whole doller value. b. Are there options available for how to allocate the expenses between personal and rental use? Note: You may select more then one answer. Slngle cllek the box with the questlon mark to prociuce a check mark for a correct answer and double ellek the box wlth the questlon merk to empty the box for a wrong answer. Any boxes left wlth a questlon mark will be eutometleally greded as Incorrect. b. Are there options available for how to allocate the expenses between personal and rental use? Note: You may select more than one answer. Slngle cllek the box wlth the questlon mark to prociuce a check mark for a correct answer and double cllek the box wlth the questlon merk to empty the box for a wrong answer. Any boxes left wlth a questlon merk will be autometleally greded es Incorrect. ? Tax court method IRS method Direct allocation method Approprlation method Only rental method c. What is the proper tax treatment of the rental income and expenses if Alicia and Marie rented the house for only 14 days? Property would be primarily personal; and none of the income would be included and only the interest and taxes would be deductible on Schedule A. Property would be primarily rental; and all the income would be included and the expenses would be made deductible on Schedule E. Property would be primarily rental; and all the income would be included and the expenses would be made deductible on Schedule A. Property would be primarily personal; and all the income would be included and the expenses would be made deductible on Schedule EStep by Step Solution
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