When you have both rental and personal use of a home, your tax life gets more complicated because you have entered the tax code’s vacation home section. Continue reading to learn more.
All tagged vacation home
Tax Implications When Your Vacation Home Is a Rental Property
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.
Vacation Home Rental—What’s Best for You: Schedule C or E?
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.
Using a Vacation Home as a Rental Property and for Personal Use
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.