Question $6$

Jacob lives next to the Indianapolis $500$ race track. Jacob rents his house out the week $(7$ days$)$ of the big race for $$10,000.$ The rest of the year, he uses the home as his personal residence. Which of the following are true about the $$10,000$ rent Jacob receives

A$.$

He does not need to include the $$10,000$ in rent on his tax return, but cannot deduct any rental expense.

B$.$

He needs to include the $$10,000$ in rent on his tax return, but cannot deduct any rental expenses.

C$.$

He does not need to include the $$10,000$ in rent on his tax return, but can deduct all direct rental expenses he incurs

D$.$

He needs to include the $$10,000$ in rent on his tax return, but can deduct all direct rental expenses he incurs.