Asked by Brianna Austin on Jun 26, 2024
Verified
Explain what is considered personal use of a rental property.
Personal Use
The use of a property or item by the owner or their family for non-business and non-rental purposes, affecting the tax implications of expenses related to the property or item.
- Recognize the contrasts between personal and rental utilization of property and its ramifications on taxation.
Verified Answer
DA
Daniela AzpilcuetaJun 29, 2024
Final Answer :
Personal use of a dwelling is any use by:
1.The taxpayer,any member of the taxpayer's family,or any other person with an interest in the unit.
2.Any individual who uses the unit under an arrangement that enables the taxpayer to use some other dwelling unit (reciprocal-use arrangement).
3.Any individual unless for such day the dwelling unit is rented for its fair rental value.
If a taxpayer lets anyone,family or non-family,use the rental property free of a rental charge,those days are considered personal use days by the taxpayer,unless the taxpayer was performing repairs on the property.If any family member uses the rental property (whether or not he/she pays fair rental value)the days are considered personal use days.
1.The taxpayer,any member of the taxpayer's family,or any other person with an interest in the unit.
2.Any individual who uses the unit under an arrangement that enables the taxpayer to use some other dwelling unit (reciprocal-use arrangement).
3.Any individual unless for such day the dwelling unit is rented for its fair rental value.
If a taxpayer lets anyone,family or non-family,use the rental property free of a rental charge,those days are considered personal use days by the taxpayer,unless the taxpayer was performing repairs on the property.If any family member uses the rental property (whether or not he/she pays fair rental value)the days are considered personal use days.
Learning Objectives
- Recognize the contrasts between personal and rental utilization of property and its ramifications on taxation.
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