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Matt and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (6 weeks) at $890 per
Matt and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (6 weeks) at $890 per week and used it for personal use for 58 days. The total costs of maintaining the home are as follows:
Mortgage interest | $4,200 |
Property taxes | 700 |
Insurance | 1,200 |
Utilities | 3,200 |
Repairs | 1,900 |
Depreciation | 5,500 |
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What is the proper tax treatment of this information on their tax return using the Tax Court method?
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Are there options available for how to allocate the expenses between personal and rental use? Explain.
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What is the proper tax treatment of the rental income and expenses if Matt and Marie rented the house for only 14 days?
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