Where can I find out about tax implications on renting my home out as a short term vacation rental? (more than 14 days a year)

Asked by Rentahen, 90210 Thu Apr 12, 2012

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Steven Ornellas’ answer
Steven Ornel…, Agent, Fremont, CA
Thu Apr 12, 2012
Rentahen:

You definitely need to speak to a CPA for a final definitive answer regarding your question.

My personal understanding is that one can still take the mortgage interest deduction (MID) and rent their personal residence out tax-free for up to 14 days a year; HOWEVER, once you surpass 14 days:

1) You have to claim all the rent as income (if you do not exceed the 14 day rule the rent is tax-free),

2) You lose your right to claim the MID and

3) You cannot claim business expenses or depreciation.

See:
Topic 415 - Renting Residential and Vacation Property (formerly Renting Vacation Property and Renting to Relatives)
http://www.irs.gov/taxtopics/tc415.html

Publication 527 (2011), Residential Rental Property
http://www.irs.gov/publications/p527/index.html

Publication 936 (2011), Home Mortgage Interest Deduction
http://www.irs.gov/publications/p936/index.html

-Steve
0 votes
Drew De La H…, , Beverly Hills, CA
Thu Apr 12, 2012
My CPA does taxes for hundreds of wealthy individuals, and he may be able to help you. Contact me directly, and I'll try to put you two together.

Best regards,

Drew de la Houssaye
The Brokerage Real Estate Group Beverly Hills
0 votes
Jodie Franci…, Agent, Sherman oaks, CA
Thu Apr 12, 2012
Hi Rentahen,

You need to speak with your tax professional, or CPA. They are the only ones that are qualified to give you all of the tax implications. Good Luck!

Best regards,

Jodie
0 votes
Cameron Novak, Agent, Corona, CA
Thu Apr 12, 2012
Your best bet is to contact a tax/accounting professional in your area.

Good luck in your endeavor,

Cameron Novak, Broker
Corona, California
0 votes
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