Peter, one of your clients, lives in a big house in New Orleans, Louisiana. During 2022, he rented out his house during Mardi Gras to a wealthy couple for a five-day period. Peter received $20,000 for the rental. He also paid $800 to have the house cleaned after the couple left. Peter did not rent his residence for any other days in 2022. Peter asks you if the $20,000 is and whether he can deduct his related cleaning fees. What do you tell him?

a. The entire $20,000 is taxable and there is no deduction for the cleaning fees.

b. The entire $20,000 is taxable, however, Peter can deduct the cleaning fees if he itemized for 2022.

c. None of the $20,000 is taxable and no deduction is allowed for the cleaning fees.

d. None of the $20,000 is taxable but Peter is allowed to deduct the cleaning fees for AGI.