Asked by Samantha Matias on May 07, 2024
Verified
A property that has been rented for 120 days and used for personal use for 13 days should be categorized as:
A) Primarily rental
B) Primarily personal
C) Personal/rental
D) None of these
Primarily Rental
Pertaining to the use of property mainly for rental purposes, which may affect the tax treatment of income and expenses related to the property.
Primarily Personal
This term typically pertains to expenses or activities that are mainly for personal benefit, and therefore, not deductible for tax purposes if related to business.
- Comprehend the classification of properties for taxation based on their application.
Verified Answer
AG
Antoinette GutierrezMay 10, 2024
Final Answer :
A
Explanation :
A property is considered "Primarily rental" if it is rented out for more than 14 days in a year and the personal use does not exceed the greater of 14 days or 10% of the total days it was rented. Since the property was rented for 120 days and used for personal purposes for 13 days, it falls under the "Primarily rental" category.
Learning Objectives
- Comprehend the classification of properties for taxation based on their application.
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