Question
Which of the following statements is false regarding a taxpayer who rents half the square footage of his residence to an unrelated third party tenant
Which of the following statements is false regarding a taxpayer who rents half the square footage of his residence to an unrelated third party tenant while living full-time in the other half?
A. | Despite that only 50% of the property is rented, 100% of the rent collected by the taxpayer is fully taxable. | |
B. | If the above taxpayer rents his home for less than 15 days during the tax year, no rental income needs to be reported. | |
C. | While the above taxpayer may deduct (in the appropriate place on his tax return) 100% of the mortgage interest and real estate taxes on his residence, the taxpayer may only deduct half of the other rental expenses (insurance, depreciation, etc.) attributable to the one-half portion of his residence that is rented. | |
D. | All of the above are true. |
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