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:

Cervical Hump

An accumulation of fat at the base of the neck, often a sign of conditions such as Cushing's syndrome or a result of prolonged poor posture.

Moon Face

A round and full facial appearance, typically resulting from steroid treatment or conditions like Cushing's syndrome.

Physical Growth

The process of physical development in humans and animals, often measured by changes in size, weight, and body composition.

Nutritional Status

An assessment of an individual's health as influenced by the intake and utilization of nutrients.