Question

Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year Junior:

Personally stayed in the home for 14 days.
Rented it to his favorite brother at a discount for 14 days.
Rented it to his least favorite brother for seventeen days at the full market rate.
Rented it to his friend at a discounted rate for nine days.
Rented the home to third parties for 79 days at the market rate.
Did repair and maintenance work on the home for two days.

Marketed the property and made it available for rent for 221 days during the year in addition to the days mentioned above.

How many days of personal use and how many days of rental use did Junior experience on the property during the year?

Days of personal use ___?
Days of rental use ___?
Rent:
Rent is the term that is used when it is paid for living in the other room ou the house. It is the expenses for the rented person and the same is the income for the owner of the house and it is also counted when taxable income is calculated.

Answer 1

Junior's property had 37 days of personal use and 96 days of rental use throughout the year. Personal use included days spent by Junior, family, and friends when rent was below the market rate, while rental use included days rented out at the full market rate.

Step-by-step explanation:

When calculating the days of personal use and rental use of Juniors property for tax purposes or any other financial calculations, we need to consider the specific purposes for which the property was used throughout the year. Personal use includes any days that the property was used by the owner for personal purposes, which can include vacations or use by family members who pay less than the fair rental price. Rental use is considered any day the property is occupied by someone who pays the market rate rent.

For personal use, Junior stayed in the property for 14 days. Although Junior rented the property to his favorite brother at a discount and to a friend at a discounted rate, for 14 days and 9 days respectively, these days are typically considered personal use because rent was not at the market rate. Thus, we add these to the personal use days. So, the total personal use days are 14 (staying) + 14 (favorite brother) + 9 (friend) which equals 37 days.

For rental use, Junior rented it to his least favorite brother at market rate for 17 days and to third parties for 79 days. Additionally, we cannot count the days Junior used for repair and maintenance as rental days as the property wasn't available for rent during these times. The total rental use days are 17 (least favorite brother) + 79 (third parties) which equals 96 days.