Question 29 of 50.

Every year, a college basketball tournament is held in Candice's city. She rents out her condominium during the week-long tournament while she goes out of town on vacation. She receives $1,675 rental income for the week. As her Tax Professional, how do you report this income?

The income is not reported because the property was rented for fewer than 15 days.

The income is reported on Schedule E, but no expenses are allowed, because Candice is not in the rental business.

The income is reported on the Other Income section of Form 1040, and rental expenses, up to the amount of income, are deducted on Schedule A.

The income and expenses are reported on Schedule E.

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