Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
Volume 6, Issue 259 May 21, 2004
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 259 May 21, 2004 |
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 » From: Calabasas, CA Dear TaxMama: I have heard that if one owns a vacatio/second home there is an IRS ruling that allows the owner to rent the home for a short period of time, such as one or two weeks, only and have the income legally unreported. Can you tell me if this is still the case and where one can find more information on the tax rules? Thanks Mamma, Additionally, I love your web site. James  Hi James, Aw thanks for the compliment. Actually, that IRS code allows you to rent your own home, not just your vacation for 14 days or less, tax-free. Isn't that a kick? During the Los Angeles Olympics, I helped a friend build a whole business around it. Over the next 10 years, until he died, he generated thousands of dollars of free income, each year for several hundred homeowners in Southern California. IRS Publication 527 has more information about renting out your home or vacation home and how to compute percentages of time and all that. It also contains this little passage: Rental of property also used as a home. If you rent property that you also use as your home and you rent it fewer than 15 days during the tax year, do not include the rent you receive in your income and do not deduct rental expenses. However, you can deduct on Schedule A (Form 1040) the interest, taxes, and casualty and theft losses that are allowed for nonrental property. See Personal Use of Dwelling Unit (Including Vacation Home), later. Enjoy the free money. Best wishes, Eva Rosenberg Your TaxMama  |
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2007 - Eva Rosenberg |
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