Vacation Homes
Response to the following problem:
Henry owns a fishing cabin in Wisconsin. Henry offered the cabin for rent from June 1 through September 30, except for 16 days in August when his family used it. Henry was unable to rent the cabin for two weeks (14 days) during the remaining rental period. At all other times, the cabin was rented at fair rental to unrelated persons.
a. Will Henry's cabin be treated as a residence? Explain.
b. For purposes of allocating expenses, how many days of rental use does Henry have?