Claire and Harry Own a House on Hilton Head Island

question 158

Multiple Choice

Claire and Harry own a house on Hilton Head Island.During the year,Claire and Harry rent the house for 30 days to friends from Texas for $2,000.Claire and Harry use the house a total of 60 days during the year.After making the appropriate allocation of expenses between personal and rental use,the following rental loss was determined:
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How should Claire and Harry report the rental income and expenses for the forthcoming year?
I.Report the $100 loss for AGI.II.Only expenses up to the amount of $2,000 rental income may be deducted for the year.
III.Include the $2,000 in gross income,but no deductions are allowed.
IV.Nothing needs to be reported.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Statements II and III are correct.
• D)Statements III and IV are correct.
• E)Statements I and III are correct.

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Definitions:

Job Satisfaction

Job satisfaction is the level of contentment employees feel regarding their jobs, including aspects like work environment, pay, and job duties.

Bureaucratic

Relating to a system of government in which most of the important decisions are made by state officials rather than by elected representatives.

Direct Supervision

The oversight of activities or individuals through immediate, on-site guidance and direction by a supervisor or manager.

Cumulative Stressor

A stress factor that increases in severity over time, often resulting from the accumulation of multiple stressors.