Question

Phil used his rental property for personal use for 7 days and rented it for 63 days. In most cases, what percentage of his expenses are not rental expenses and cannot be deducted on Schedule E?

a. 10%
b. 20%
c. 50%
d. 90%

Answer 1

Answer: a. 10%

Step-by-step explanation:

The total number of days the property was used:

= 7 + 63

= 70 days

He used the property for personal use for 7 days out of that:

= 7/70

= 10%

That 10% cannot be deducted as rental expenses because he used these for personal use.