Kimberly lived in his home near Oahu, Hawaii all year except for when he rented his home to Diedra and Paul for 14 days in October. They paid Kimberly $20,000 in rent for the 14 days. Kimberly spent $2,000 in direct expenses relating to the home for the 14 days. Which of the following is true?

Select one:

a. Kimberly files Schedule E and would include the rental receipts in gross income and deduct the rental expenses on that form.

b. Kimberly would deduct the rental expenses for AGI and would exclude the rental receipts from gross income

c. Kimberly would not deduct the rental expenses. nor include the rental receipts.

d. Kimberly would not deduct the rental expenses because he used the residence for personal purposes for most of the year but would include the rental receipts in gross income