Under Sec.$280$A$,$ 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?

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Part $1$

A$.$

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.

B$.$

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.

C$.$

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

D$.$

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.