Homework SourseIn order for a dwelling unit to be considered a residence it
In order for a dwelling unit to be considered a residence, it must be used personally for a certain amount of time. Which statement best describes the time requirement? *
| Used by a third party no more than the greater of 182 days or 50% of the days used personally. | |
| Rented out for the lesser of 30 days or 10% of the total number of days the property is rented at fair rental value. | |
| Used for personal purposes during the tax year for more than the greater of 14 days or 10% of the total number of days the property is rented at fair rental value. | |
| Rented to a third party at fair rental value for 15 days or more |
Solution
Dwelling unit means a structure or part of the structure that is used as a home,residence or sleeping place by one person who maintains a household or by two or more persons who maintains common household.
As per IRS Topic No:415-Renting Residential & Vacation Property: A dwelling unit is considered as a residence if it is used for personal purposes during the tax year for more than the greater of (a) 14 Days or (b) 10% of total days the property is rented at fair rental value.
