Question

Which of the following statements regarding personal and/or rental use of a home is false? Multiple Choice A day for which a taxpayer rents a home to an unrelated party for less than the property's fair market value is considered to be a personal-use day. A day for which a taxpayer rents a home to a relative for full fair market value is considered to be a rental use day (home is not the relative’s principal residence). A day for which an unrelated nonowner stays in the home under a vacation exchange arrangement is considered to be a personal-use day. A day for which the home is available for rent but is not occupied does not count as a personal-use or a rental use day.

Answer 1

Answer:

A day for which a taxpayer rents a home to a relative for full fair market value is considered to be a

rental use day.

Explanation:

Personal use property can be regarded as type of property/ asset that is not been used by individual for purpose of business or investment purpose. personal use portion of interest on mortgage as well as property taxes is been passed on to the owners. In the case, whereby the the property qualifies as a residence, whereby the property is been rented like less than 15 days within the year, the rental income cannot be taxed

It should be noted that some instances of personal and/or rental use of a home are;

✓ A day for which a taxpayer rents a home to an unrelated party for less than the property's fair market value is considered to be a personal-use day.

✓ A day for which an unrelated nonowner stays in the home under a vacation exchange arrangement is considered to be a personal-use day.

✓A day for which the home is available for rent but is not occupied does not count as a personal-use or a rental use day.