Charles and Sarah Own a Home in Palm Springs,CA

question 31

Multiple Choice

Charles and Sarah own a home in Palm Springs,CA.During the year,they rented the house for 40 days for $5,000 and used it for personal use for 18 days.The house remained vacant for the remainder of the year.The expenses for the house included $16,000 in mortgage interest,$4,500 in property taxes,$1,000 in utilities,$1,200 in maintenance,and $9,800 in depreciation.What is the deductible loss for the rental of their home (without considering the passive loss limitation) ? Use the Tax Court method for allocation of expenses.

• A)$0
• B)$5,000 net income
• C)$17,414 net loss
• D)$27,500 net loss

---

Definitions:

Scatterplot

A type of graph in statistics used to display values for two variables for a set of data, showing the relation between them.

Histogram

A graphical representation of the distribution of numerical data, where the data is grouped into ranges and represented as bars.

Daily Sales

The total revenue generated from sales of goods or services in a single business day.

Personnel File

A collection of records pertaining to an employee's history and performance in an organization.