For a Home to Be Considered a Rental (Nonresidence) Property

question 78

Multiple Choice

For a home to be considered a rental (nonresidence) property, a taxpayer must:

• A) rent the property for 15 days or more during the year.
• B) use the property for personal purposes for no more than the greater of (a) 14 days or (b) 10 percent of the total days rented.
• C) use the property for personal purposes for no more than the lesser of (a) 14 days or (b) 10 percent of the total days rented.
• D) rent the property for 1 day or more during the year and use the property for personal purposes for no more than the greater of (a) 14 days or (b) 10 percent of the total days rented.
• E) rent the property for 15 days or more during the year and use the property for personal purposes for no more than the lesser of (a) 14 days or (b) 10 percent of the total days rented.

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Definitions:

Foreign Countries

Nations or territories outside one's own country, governed by distinct legal, political, and cultural systems.

Independent Contractor

An individual or entity contracted to perform work for another entity as a non-employee, typically retaining control over how their work is completed.

Employee

An individual who is hired by a company to perform specific duties in exchange for compensation, typically under the control and direction of the employer.

Disclosed Principal

A principal whose identity is known by the third party at the time the agent makes a contract on behalf of the principal.