Question

Unless otherwise specified through an agreement, if one spouse rents out their separate property, the income is considered:__________________________________________

Answer 1

The income from renting out separate property is considered separate property, unless otherwise specified through an agreement.

Step-by-step explanation:

Unless otherwise specified through an agreement, if one spouse rents out their separate property, the income is considered separate property for tax purposes.

For example, if a married couple owns two houses, one as their marital home and the other as separate property, and the spouse who owns the separate property rents it out, the rental income generated from that property would be considered the separate property of the owner spouse.

However, it is important to review any specific agreements or state laws that may apply to determine the classification of the rental income.