Which of the Following Statements Is True Concerning Vacation Home

question 7

Multiple Choice

Which of the following statements is true concerning vacation home properties?

• A)A property rented for 15 days or more and used for personal use for no more than 14 days is categorized as primarily rental.
• B)A property rented for 15 days or more and used for personal use for more than 14 days is categorized as primarily personal.
• C)A property categorized as primarily personal is one rented for zero days.
• D)Report all income and expenses for a personal/rental property and the net amount reported may be either net income or net loss.

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Definitions:

Benefits

Various forms of value, such as medical insurance, retirement plans, or paid leave, provided to employees in addition to wages or salaries.

Agreement

A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events—an offer by one party to form a contract, and an acceptance of the offer by the person to whom the offer is made.

Illegal Contract

A contract that is void and unenforceable from the outset because it involves activities that are against the law or public policy.

Restitution

The act of compensating for loss, damage, or injury caused, often involving the return of stolen or lost property to the rightful owner.