Tax Window for Vacation Homes

Tax Window for Vacation Homes

Tax Window, You See What I Did There?

Perhaps you own a vacation home that you and your family use personally.

Key tax break: There is a unique tax window of opportunity for short-term rentals. If the rental for the year lasts 14 days or less (this is the key amount of time), you do not have to report any income or expenses on your tax return.  FYI, there has been a lot of talk recently about how cities, like Tuscaloosa, are cracking down on short-term rentals.

For example, say you rent out your second home for two weeks this summer at $2,500 per week. Result: You can pocket the entire $5,000 free and clear FROM INCOME TAXES.  You still may owe city lodging taxes or something like that depending on the final regulations where the rented home is.

About the Author:

Bobby M. Bragg

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