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Tom and Susie own their only home in Uptown New Orleans. NCIS New Orleans rents their...

Tom and Susie own their only home in Uptown New Orleans. NCIS New Orleans rents their home for a week to shoot an episode. Tom and Susie receive $10,000 from NCIS as rental income. During this week Tom and Susie take a vacation to Destin and have to spend $2,000 for a beach rental. How should this transaction be taxed?

a.Tom and Susie have to include the $10,000 as income on Schedule E but get to deduct a portion of their home’s expenses.

b.Tom and Susie have to include the $10,000 as income on Schedule E. They are allowed to deduct a portion of their home’s expenses as well as the travel to Destin.

c.Tom and Susie do not include the $10,000 as gross income.

d.Tom and Susie have to include the $10,000 as income on Schedule C and deduct a portion of their home’s expenses.

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