Taxes and Home Rentals - Part 1

          In recent years, there has been a rapid growth in the travel industry with regard to vacation accommodations. It seems that there are many options that allow people to choose where they can stay when visiting other areas, but most interestingly, more people than ever can now offer up their home or a vacation home for travelers to stay in. While this might be a new field to some, this is a source of income that is quite familiar to the IRS. As a result, there are well established rules in effect when it comes to renting a vacation home.

          Simply stated, the rules about taxing vacation home rentals change depending on whether the home is rented for 15 days or more in the given year. If it is less than 15 days, then congratulations are in order. There will be no taxes applied to that income! Qualified expenses can still be used as deductions as well.

           If the home is rented for more than 15 days, the rules will change drastically. Yes, taxes will be owed on that income. It will be important to note how many days you use the home, as well as, how many days it is rented out during the year. A variety of forms will need to be used on your Federal Income Tax Return. If this is a venture you plan on getting involved in for the coming year, or you took part of in the last year, and are not sure how to account for it we at Anthony Sykes & Co are here to guide and provide the needed insight for your endeavors.

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