Renting Your Vacation Home

Do you own a vacation home you sometimes rent to others? If so, there are rules on reporting your rental income and expenses.

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For example, if you rent out your vacation home only for a short time – fewer than 15 days a year, you may not have to report it at all. That means generally, if you rent out your vacation home for two weeks a year or less, your rental income is tax-free and you won’t need to show it on your return. Also, if you itemize deductions on Schedule A, you may be able to claim qualified mortgage interest, property taxes you pay, and eligible casualty losses.

On the other hand, if you rent your home for 15 days or more during the year, the rental income you receive is always taxable. That means you must report it on your return using Schedule E. Also the rules for claiming your expenses are more complicated. Different factors come into play, like the number of days you rent your home compared to how long you use it yourself. That affects how much you can deduct from your taxes, which expenses you can claim, and how you report them.

Learn about when and how to report rental income from a vacation home such as a house, condominium, mobile home or boat. For more, go to https://www.irs.gov/homerental