Unfortunately for taxpayers rental income is taxed but there are a few rules you should know about rental income before you fill out your tax return. Renting income from a vacation home can take many forms. You can be taxed on a house, mobile home, even a boat but one thing that doesn’t change for the three is the amount of time that you rent it. If you rent the vacation home for less than 15 days per year then you do not have to report any of your rental income. Renting less than 15 days works to your advantage and allows the taxpayer to deduct expenses, such as casualty losses and property expenses. Although, there are some disadvantages to the deductions. If the renter uses the vacation home as a residence or more than 10% of the total days it is rented then deductible rental expenses would be limited, based on the amount of rental income. We know the summer is coming to an end so if you have any questions about the tax implications on renting your vacation home feel free to give us a call.
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