Question

Jenny rents part of her personal residence in the summer for 10 days for 1,000. Shanika rents all of her personal residence for three weeks in December for 2,500. Shanika must include the 2,500 in her gross income, whereas Jenny is not required to include the 1,000 in her gross income.

1) True
2) False

Answer 1

The statement is True. Rental income from a personal residence is generally not considered taxable if the home is rented for fewer than 15 days a year. Shanika must include the $2,500 in her gross income, whereas Jenny does not need to include the $1,000 in her gross income.

Step-by-step explanation:

The statement is True.

Rental income from a personal residence is generally not considered taxable income if the home is rented for fewer than 15 days a year. Since Jenny rented her personal residence for only 10 days, she does not need to include the $1,000 in her gross income.

On the other hand, Shanika rented her entire personal residence for three weeks, which is longer than 15 days. In this case, she is required to include the $2,500 in her gross income for tax purposes.