Tax Treatment of Seo-Yeon's Condominium Based on Days of Residence

How should Seo-Yeon's condominium be treated for tax purposes?

Seo-Yeon owns a condominium and lives in it for a certain number of days while renting it out for other days. Should the condominium be treated as a residence or a nonresidence for tax purposes?

Answer:

For tax purposes, the treatment of Seo-Yeon's condominium as a residence or nonresidence depends on the number of days she lives in it and the number of days she rents it out. Here's the breakdown for each situation:

1. In the first situation, Seo-Yeon lives in the condo for 28 days and rents it out for 23 days. Since she lives in the condo for more days than she rents it out, it would be treated as a residence for tax purposes.

2. In the second situation, Seo-Yeon lives in the condo for 8 days and rents it out for 23 days. Here, she rents out the condo for more days than she lives in it, so it would be treated as a nonresidence for tax purposes.

3. In the third situation, Seo-Yeon lives in the condo for 73 days and rents it out for 106 days. Again, she lives in the condo for more days than she rents it out, so it would be treated as a residence.

4. In the fourth situation, Seo-Yeon lives in the condo for 29 days and rents it out for 316 days. Here, she rents out the condo for significantly more days than she lives in it, so it would be treated as a nonresidence.

In summary, if Seo-Yeon lives in the condo for more days than she rents it out, it is treated as a residence for tax purposes. However, if she rents it out for more days than she lives in it, it is treated as a nonresidence.