IRS Tax Tip 2018-79: Plan ahead for vacation home rentals

 

IRS Tax Tips May 22, 2018

Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Compliance & Enforcement News Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media

Issue Number:   Tax Tip 2018-79 Plan ahead for vacation home rentals During the summer, taxpayers often rent out their property. They usually think about things such as cleanup and maintenance, but owners also need to be aware of the tax implications of residential and vacation home rentals. If taxpayers receive money for the use of a house that's also used as a taxpayer's personal residence, it generally requires reporting the rental income on a tax return. •Vacation Home.  This may be a house, an apartment, condominium, mobile home, boat, vacation home or similar property. It's possible to use more than one unit as a residence during the year. •Used as a Home.  When the property is used as a home, the rental expense deduction is limited. This means the rental expenses cannot be more than the rent received. •Personal Use.  Personal use means use by the owner, owner's family, friends, other property owners and their families. Personal use includes anyone paying less than a fair rental price. •Divide Expenses. Generally, special rules apply to the rental expenses of a property that's used by the taxpayer as a residence during the taxable year. Usually, rental income must be reported in full, and any expenses need to be divided between personal and business purposes. •How to Report. Taxpayers use Schedule E to report rental income and rental expenses. Rental income may also be subject to Net Investment Income Tax. •Special Rules.  If the home unit is rented out fewer than 15 days during the year, none of the rental income is reportable and none of the rental expenses are deductible. More Information: •Tax Topic 415 , Renting Residential and Vacation Property •Publication 527, Residential Rental Property (Including Rental of Vacation Homes) IRS YouTube Videos: Renting Your Vacation Home – English | Spanish | ASL Share this tip on social media -- #IRSTaxTip: Plan ahead for vacation home rentals. https://go.usa.gov/xQP6v Back to Top Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

---

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

---

This email was sent to business.solutions.ve@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535