Edgar owns a lake house. He used it as a vacation home most weekends during the current tax year, but he occasionally rented it out when he could not getaway. Under what circumstances would Ryan be required to report this rental income on his tax return?

He only needs to report the income if the amount of rent he received was equal to or greater than the fair rental value for this type of property.

He only needs to report the income if the number of days he rented the property exceeds 10% of the days he used it personally.

He only needs to report the income if he rented the house for 15 days or more during the year.

No special rules apply. He must always report all the rental income received.

Answer rating: 100% (QA)

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