Vanessa Owns a Houseboat on Lake Las Vegas That She

question 13

Multiple Choice

Vanessa owns a houseboat on Lake Las Vegas that she personally uses for 25 days out of the year and rents for 280 days.For tax purposes,the houseboat is classified as

• A)neither a residence nor rental property.Because it is rented a nominal number of personal-use days,both revenue and expenses (other than those otherwise allowable)are ignored.
• B)rental property.Expenses in excess of income may be deducted although net income or loss is subject to the passive activity rules.
• C)property that is treated as a hobby which gives rise to from AGI deductions only.
• D)a combination of the taxpayer's residence and rental property.The deduction for expenses is limited to the amount of income generated by the property.

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Definitions:

Millions Of Dollars

A monetary unit used to describe large sums of money, typically used in financial reports, budgets, or to denote the scale of a project or value of an entity.

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Marketing Costs

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The value and strength of a brand that determines its worth, influenced by consumer perception, recognition, and loyalty.