Tom and Susie own their only home in Uptown New Orleans. NCIS New Orleans rents their home for a week to shoot an episode. Tom and Susie receive $10,000 from NCIS as rental income. During this week Tom and Susie take a vacation to Destin and have to spend $2,000 for a beach rental. How should this transaction be taxed?

a.Tom and Susie have to include the $10,000 as income on Schedule E but get to deduct a portion of their homes expenses.

b.Tom and Susie have to include the $10,000 as income on Schedule E. They are allowed to deduct a portion of their homes expenses as well as the travel to Destin.

c.Tom and Susie do not include the $10,000 as gross income.

d.Tom and Susie have to include the $10,000 as income on Schedule C and deduct a portion of their homes expenses.