Chris, who itemizes deductions, owns two homes. The first is their principal residence, where they live most of the year. The second is a vacation home. In 2022, Chris rented the vacation home at fair market value to unrelated parties for a total of 160 days. Chris stayed in the vacation home for 15 days in 2022. Is the vacation home a “qualified residence” under Section 163(h)(4)(A)(i)?
Question 4Answer
Yes, because Chris has only one other home apart from the vacation home
Yes, because Chris stayed in the vacation home for more than 14 days
No, because 15 is less than 16
No, because a vacation home is never a “qualified residence”
The correct response cannot be determined from the information given
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