TITLE

Getting More Out of a Vacation House

AUTHOR(S)
Feldman, Amy
PUB. DATE
September 2004
SOURCE
Money;Sep2004, Vol. 33 Issue 9, p49
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
This article presents tax advice on owning a vacation home. One of the big attractions of owning a vacation home--apart, of course, from being able to enjoy your own place at the beach, lake or mountains--is the ability to make money renting the place out. The tax rules on vacation homes, though, can be tricky when it comes to renting them out and selling them. Plus you get a nice break: If you rent your house for 14 days or less, that rental income is exempt from taxes and need not even be reported to the IRS, which is how some people have made tax-free fortunes renting their homes out during conventions and big sporting events. If, however, you rent the house and use it yourself, the IRS will require you to split your mortgage interest and property taxes between Schedule E (the form for rental income and expenses) and Schedule A (the standard form for itemized deductions). Your ability to realize tax losses from renting a vacation home is also restricted by your income.
ACCESSION #
14132035

 

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