Case Study 3: Personal Use of Rental Property
Latricia converted the basement of her home into a one-bedroom apartment. She rented the apartment at a fair rental price to college students during the nine-month school year. During June, Latricia's brother stayed in the apartment rent-free.
Limitations will apply to Latricia's rental expense deductions because the apartment was used for personal purposes for 30 days, which was more than the greater of: