Monday, April 18, 2022

The Tax Rules of Renting Out a Vacation Property

What are the tax consequences of renting out a vacation home part of the year? It depends on how many days it’s rented and your level of personal use.

Personal use includes vacation use by your relatives and use by non-relatives if market rate rent isn’t charged. If you rent the property for less than 15 days during the year, it’s not treated as rental property. Any rent received isn’t included in your income for tax purposes. But you can only deduct property taxes and mortgage interest.

If you rent the property for more than 14 days, you include the rent you receive in income and you can deduct part of your operating expenses and depreciation, subject to several rules.

Questions? Contact us.


© 2022