Final answer:
Based on tax regulations, Jorge likely does not need to allocate expenses between rental and personal use since the personal use of his property does not exceed the greater of 14 days or 10% of the total days rented. He rents the property for 360 days and uses it personally for only 5 days, falling below the 14-day and 10% thresholds.
Step-by-step explanation:
The question pertains to the allocation of expenses for a property that is used both for personal and rental purposes. According to tax regulations, when a property like Jorge's home is rented out for more than 14 days per year, the owner must usually allocate expenses between rental and personal use based on the number of days used for each purpose. However, if the personal use does not exceed the greater of 14 days or 10% of the total days rented at fair rental price, then typically the owner may not need to allocate expenses and can potentially deduct all the rental expenses. Since Jorge's home is rented for 360 days and used personally for only five days, this falls beneath both the 14-day threshold and the 10% threshold (10% of 360 is 36 days), and thus, based on this information, he likely would not need to allocate expenses. However, he should still consult a tax professional for confirmation and to ensure compliance with all applicable tax laws.