Question

Vacation home rules apply to which of the following taxpayers?

O ander rents an apartment all year to his mother at less than a fair rental value.
O annika bought a new home. she converted her old home into a rental property. the tenants use it as their main home and annika charges a fair rental value.
O lena rented her beach house to tenants for 210 days during the year for fair rental value. she used the beach house herself for 45 days during the year.
O lars rents out a room in his house at a fair rental value. the room was rented out for the entire year.

Answer 1

Vacation home rules apply to taxpayers who rent out their property for a certain period of time and use it for personal purposes for a limited number of days.

Step-by-step explanation:

Vacation home rules apply to specific taxpayers. Let's analyze each option:

1. Ander renting an apartment to his mother at less than a fair rental value does not fall under vacation home rules.
2. Annika converting her old home into a rental property and charging a fair rental value for the tenants who use it as their main home does not fall under vacation home rules.
3. Lena renting her beach house for 210 days during the year and using it herself for 45 days falls under vacation home rules. Since Lena used the beach house for fewer than 14 days or 10% of the total rental days, it is still classified as a rental property.
4. Lars renting out a room in his house for the entire year at a fair rental value falls under vacation home rules. Lars' personal use of the room is considered minimal, and the property is still primarily used for rental purposes.

Therefore, the taxpayers in options 3 (Lena) and 4 (Lars) are subject to vacation home rules.