1. Kirk and Amy live in Augusta, Georgia. Every year during the Masters Golf Tournament, they rent their primary personal residence for 10 days for $10,000 to a large corporation that uses it to entertain clients. The rest of year, they reside full-time in their home. How should Kirk and Amy treat the rental income? Explain.

Meredith has a vacation rental house in the Sierra Mountains. During the year, she and her immediate family used the house for 12 days for a personal vacation. Meredith spent two more weekends (4 days in total) repairing the deck. The house was rented for 120 days. How should the cabin be categorized this year for tax purposes? Explain your answer.

Assume the same facts as #2, but Meredith rented her house (at fair value) to her brother and his family for 9 days (in addition to her personal use) and total days rented was 180 days. How is the cabin categorized now?

Answer rating: 100% (QA)

Do you own a second home that you sometimes use for vacations and sometimes rent out The IRS wants to know how much time you spend doing both those things because the answer can affects your federal i... View the full answer