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Business, 25.11.2020 17:10 taylorpayne525p8qxky

Hugh and Mary own a cabin in Big Bear that they rented for 45 days at $4,500. They used the cabin for personal use for 30 days during the year. The allocated expenses related to the cabin of $6,000 resulted in a net loss of $1,500 for this rental activity. What is the proper tax treatment of these amounts by Hugh and Mary? A. Report net income of $4,500
B. Report rental net loss of $1,500
C. None of the amounts should be reported
D. Report income and expenses on Schedule E but expenses cannot exceed income

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