Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Schedules K-1 and Rental Income Workout

Special Allocations

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.

  • Did Latricia use the apartment as a home?
  • Will limitations apply to Latricia's rental expense deductions?

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