Last fall (2017) Ann rented her new chalet in Vermont to a very nice couple for $1000/month starting in November until March 31, 2017. The chalet cost $60,000 in the Spring of 2017 and Ann could only use it during my two-week vacation last summer. Insurance cost $1,200/year and taxes another $600. Ann did, however, pay cash for the chalet. It cost $600/month for all utilities during the rental period. Ann also received the March rent in November as a security deposit.
Which of the following statements about the chalet is correct? (a) the March rent is taxable next year when applied, (b) the $600 utilizes are limited under code section 280A, (c) the property cannot show a tax deductible loss, or (d) none of the above
(b) the $600 utilizes are... View the full answer