A Property Rented for Less Than 15 Days and Used

question 101

True/False

A property rented for less than 15 days and used for personal use the remainder of the year, should have the rental income reported on Schedule E.
This property is considered primarily personal and therefore, none of the rental income is included in gross income.

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Definitions:

Prepaid Insurance

An asset account representing insurance paid in advance, which will be expensed over the period it benefits.

Fees Earned

Income or revenue generated through providing services.

Creditor's Account

An account maintained to record transactions involving credit purchases or loans received, indicating the amount owed to suppliers or lenders.

General Journal

A fundamental bookkeeping document designed to systematically record every business transaction by date.