Which of the Following Statements Regarding the IRS And/or Tax

question 32

Multiple Choice

Which of the following statements regarding the IRS and/or Tax Court approaches to allocating home-related expenses between rental use and personal use is correct?

• A)The Tax Court approach allocates more property tax and interest expense to rental use than does the IRS approach.
• B)The Tax Court and the IRS approaches allocate the same amount of expenses, other than interest expense and property taxes, to rental use.
• C)The IRS approach allocates interest expense and property taxes to rental use based on the ratio of the number of days of rental use to the total days of the year.
• D)None of the choices are correct.

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Definitions:

Reciprocity

The social norm that suggests people should return help, not harm, to those who have behaved kindly towards them.

Foot-In-The-Door Technique

A persuasion strategy that involves getting someone to agree to a small request in order to increase the likelihood of agreeing to a larger request later.

Door-In-The-Face Technique

A persuasion strategy where a large, unreasonable request is first made knowing it will be refused so that a smaller, more moderate request will be accepted.

Sleeper Effect Method

A phenomenon where a message that was initially discounted gains in persuasiveness over time, often due to the dissociation of the message from its source.