Haysad owns a house on Lake Tahoe. He uses a real estate firm to screen prospective renters,

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Haysad owns a house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental price of the house. During the current year, the house rents for $1,500 per week. Haysad pays a commission of $150 and a cleaning fee of $75 for each week the property is rented. During the current year, he incurs the following additional expenses related to the property:

a. What is the proper tax treatment if Haysad rents the house for only 1 week (7 days) and uses it 50 days for personal purposes?

b. What is the proper tax treatment if Haysad rents the house for 8 weeks (56 days) and uses it 44 days for personal purposes?

c. What is the proper tax treatment if Haysad rents the house for 25 weeks (175 days) and uses it 15 days for personal purposes?

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Concepts In Federal Taxation 2022

ISBN: 9780357515785

29th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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