Asked by Collin Shaffer on Jun 17, 2024

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A property that has been rented for 180 days and used for personal use for 16 days should be categorized as:

A) primarily rental
B) primarily personal
C) personal/rental
D) all of these are correct

Primarily Rental

This refers to income or property that is mainly used for rental purposes, often generating rental income for the owner.

Primarily Personal

Describes expenses or activities mainly for individual or non-business purposes.

Personal/Rental

Pertaining to property that is used for personal purposes at times and rented out at others, often affecting tax implications.

  • Analyze the distinguishing factors between personal and rental property use, understanding the associated tax responsibilities.
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Verified Answer

JG
Jared GuaschJun 20, 2024
Final Answer :
A
Explanation :
This property should be categorized as primarily rental because it was rented out for more than 14 days and the personal use days do not exceed the greater of 14 days or 10% of the days it was rented at fair rental value, which in this case would be 18 days (10% of 180 days). Since personal use is only 16 days, it falls under the primarily rental category.