Under Sec. 280A, how will a taxpayer report the income and expenses of a vacation home if it is rented out for only 12 days during the year?

A.

The income and expenses are reported for the 12 days the vacation home was rented.

B.

The taxpayer will report the rental income. The rental expenses, interest and property taxes attributable to the vacation home are deductible if (1) the taxpayer uses the vacation home as a residence for the taxable year, and (2) the taxpayer rents the vacation home for less than 15 days during the taxable year.

C.

The income is reported and only expenses such as qualified interest and taxes may still be deductible as itemized deductions for only the 12 days the vacation home was rented. If the taxpayer used the vacation home as a personal residence, the related mortgage interest expense may be deducted from AGI as a business deduction. If the vacation home does not qualify as a personal residence, none of the related mortgage interest expense is deductible.

D.

The revenue from any rentals are excluded from the taxpayer's gross income if the vacation home has been rented for less than 15 days during the tax year. Any property tax expense related to the vacation home is deductible from AGI as an itemized deduction. If the taxpayer used the vacation home as a personal residence, the related mortgage interest expense may be deducted from AGI as an itemized deduction. If the vacation home does not qualify as a personal residence, none of the related mortgage interest expense is deductible.