Lilliana owns a houseboat on Lake Tahoe that she personally uses for 30 days out of the year and rents for 280 days. For tax purposes, the houseboat is classified as

A) property that is treated as a hobby which gives rise to from AGI deductions only.

B) a combination of the taxpayer's residence and rental property. The deduction for expenses is limited to the amount of income generated by the property.

C) rental property. Expenses in excess of income may be deducted although net income or loss is subject to the passive activity rules.

D) neither a residence nor rental property. Because it is rented a nominal number of personal-use days, both revenue and expenses (other than those otherwise allowable) are ignored.