There’s good news if you own a vacation home that you rent out: The Tax Cuts and Jobs Act (TCJA) didn’t have much effect on how your rental income and related expenses are treated under the tax rules. But those rules are still complicated. Here’s what you should know.
Classifying Your Property
Under the Internal Revenue Code and IRS regulations, there are two classifications for vacation homes.
1. Personal residence. Your property falls under this category if:
You rent it out for more than 14 days during the year, and
Personal use during the year exceeds the greater of 14 days, or 10% of the days you rent the home out at fair market rates.… Continue Reading...