Fact vs. Fiction Archive

Fiction: Tax rates are the same no matter how many days I rent out my vacation home.

Fact: If you rent out a vacation home for fewer than 15 nights per year, you can keep the income without reporting it to the IRS. If you rent it out for longer, you must report the rental income, but you also qualify to claim certain deductions. How much you get to deduct depends on how you divide your personal time at the property and the rental time. If you spend 14 nights per year at the home, or more than 10 percent of the number of nights it is rented out (whichever is longer), the IRS considers the home a personal residence, and you can write off typical rental expenses against your rental income.

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