Recasto owns a second residence that is used for both personal and rental purposes. During 2017, Recasto used the second residence for 50 days and rented the residence to Louis for 200 days. Which of the following statements is true?
a. Depreciation may not be deducted on the property under any circumstances.
b. A rental loss may be deducted if rental-related expenses exceed rental income
c. Utilities and maintenance on the property must be divided between personal and rental use.
d. All mortgage interest and taxes on the property will be deducted to determine the property's net income or loss.
Ans: c. Utilities and maintenance on the property must be divided between personal and rental use.
You might also like to view...
A small p-value in the rune test provides evidence of:
a. randomness b. nonrandomness c. nonnormality d. heteroscedasticity
A posterior probability associated with sample information is of the form _____
a. P(a state of nature | a sample outcome) b. P(a sample outcome | a state of nature) c. P(a decision alternative | a sample outcome) d. P(a sample outcome | a decision alternative)