Question

If the residence is rented for 15 days or more in a year and is not used for personal purposes for more than the greater of (1) 14 days or (2) 10 percent of the total days rented, the residence is treated as rental property. True or false?

Answer 1

The statement is true; a residence rented for 15 or more days and used personally for less than 14 days or 10% of rented days is treated as a rental property.

Step-by-step explanation:

True. When a residence is rented out for at least 15 days in a year and the personal use does not exceed the greater of 14 days or 10 percent of the total days the property was rented, it is classified as rental property for tax purposes. This classification is important as it will determine how rental income and expenses are reported for tax purposes. It's essential to maintain accurate records of rental and personal use days to verify the property's classification.