Chas rents out his home on Air BnB for a homecoming weekend at the University of Illinois. This is the only time during the year that Chas rents out his home. If he receives $2,000 in rent, incurs $500 in expenses (Air BnB fee and cleaning costs) related to the rental. What is the treatment on his tax return?
$2,000 of gross income and the expenses are nondeductible
$2,000 of gross income and a FROM AGI deduction of $500
$2,000 of gross income and a $500 FOR AGI deduction
No gross income and no deductions