Tax Drill - Rental of Residence Complete the following statements regarding the tax treatment of vacation home rentals. a. If the residence is rented for fewer than 15 days in a year, it is treated as a personal/rental use residence is included in gross income, and mortgage interest and real estate taxes are allowed as itemized deductions b. If the residence is rented for 15 days or less days or (2) The rent income in a year and is not used for personal purposes for more than the greater of (1) percent of the total days rented, the residence is treated as deduction of the expenses allocated to rental days The exceed rent income and result in a rental loss. C If the residence is rented for 15 days or in a year and is used for personal purposes for more than the greater of (1) days or (2) rent income. percent of the total days rented, it is treated as . Expenses