Renting Your Vacation Home
If you rent out your vacation house, apartment, mobile home or even a live-in boat, you might need to report rental income on Schedule E of your tax return, and you might be subject to Net Investment Income Tax. Here are some basic facts:
• If you rented out the property for less than 15 days during the calendar year, there is no need to report the income.
• Expenses for the property will need to be divided between “personal use” and “rental use” portions; you can only deduct certain expenses to the extent of the income received on the vacation home rental.
• The “personal use” portion includes the days the property was used by your family and anyone else who paid less than the […]