Quin owns a house in Connecticut and an apartment in New Orleans. Quin spends most of her time in Connecticut, so she sometimes rents out the apartment in New Orleans when she is not there. This year, Quin rented out the apartment for thirty days and personally used the apartment for forty days. How will Quin’s rental activity be classified for tax purposes and why? A.Nontaxable activity because Quin used the apartment personally more than she rented it out. B.Mixed-use activity because Quin both rented out the apartment and used it personally. C.Mixed-use activity because Quin rented out the apartment for more than 14 days and personally used the apartment for the greater of 14 days or 10% of the rental days. D.Rental activity because Quin rented out the apartment for more than 14 days.
Quin owns a house in Connecticut and an apartment in New Orleans. Quin spends most of her time in Connecticut, so she sometimes rents out the apartment in New Orleans when she is not there. This year, Quin rented out the apartment for thirty days and personally used the apartment for forty days. How will Quin’s rental activity be classified for tax purposes and why?
A.Nontaxable activity because Quin used the apartment personally more than she rented it out.
B.Mixed-use activity because Quin both rented out the apartment and used it personally.
C.Mixed-use activity because Quin rented out the apartment for more than 14 days and personally used the apartment for the greater of 14 days or 10% of the rental days.
D.Rental activity because Quin rented out the apartment for more than 14 days.
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