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Karen and Andy own a beach house. They have an agreement with a rental agent to rent it up to 2 0 0 days per
Karen and Andy own a beach house. They have an agreement with a rental agent to rent it up to days per year. For the past three years, the agent has been successful in renting it for days. Karen and Andy use the beach house for one week during the summer and one week during Thanksgiving. Their daughter, Sarah, a college student, has asked if she and some friends can use the beach house for the week of spring break. Advise Karen and Andy on how they should respond, and identify any relevant tax issues. If the residence is rented for days or more in a year and is not used for personal purposes for more than the greaderlesser of days or of the total days rented, the residence is treated as rental property. The expenses must be allocated between personal and rental days if there are any personal use days during the year.
Karen and Andy own a beach house. They have an agreement with a rental agent to rent it up to days per year. For the past three
years, the agent has been successful in renting it for days. Karen and Andy use the beach house for one week during the summer and
one week during Thanksgiving. Their daughter, Sarah, a college student, has asked if she and some friends can use the beach house for
the week of spring break. Advise Karen and Andy on how they should respond, and identify any relevant tax issues.
If the residence is rented for days or more in a year and is not used for personal purposes for more than the greaderlesser of days or of the total days rented, the residence is treated as rental property. The expenses must be allocated between personal and rental days if there are any personal use days during the year.
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