Tax season is upon us and many are feeling the dread of that final meeting with the CPA. Tax laws for owning a vacation home that is also rented out can be confusing. The number of days the home is rented out versus the number of days the home is used personally affects the expenses that are deductible.
The Niche Report highlights some of these aspects in a timely articleÂ here.Â If the home is rented for less than 15 days out of the year, it is considered a personal home and the rental income does not have to be reported. If the home is rented for 15 or more days per year, then the homeowner may use a test provided by the IRS to determine if it is a residence or rental property.
Always be sure to check with your tax professional regarding rental income requirements. Owning a home in North Lake Tahoe is often a wonderful investment, but as a homeowner, it is your responsibility to protect that investment and make the best financial decisions for your lifestyle.