All tagged rental property
If you own rental property, you’re one of the NIIT’s prime targets. You pay the NIIT only if your modified adjusted gross income (MAGI) exceeds $200,000 if you’re single, or $250,000 if you’re married filing jointly ($125,000 for married couples filing separately), and you have net investment income.
If you have a home that you both rent out and use personally, you have a tax code-defined vacation home.
The tax code classifies your vacation home as a rental property if you rent it out for more than 14 days during the year, and your personal use during the year does not exceed the greater of (a) 14 days or (b) 10 percent of the days you rent the home out at fair market rates.
Do you have a vacation home that you rent out?
If the average period of rental is less than 30 days, you likely have a choice—either claim the income and expenses on Schedule C, or claim the income and expenses on Schedule E.
When you use a home for both rental and personal use, regardless of that home’s location at the beach or in the city, you run into the tax code’s vacation home rules that make that home either a residence or a rental property.
