Do You Have to Pay Taxes on Vacation Home Rental Income?
IF YOU RENT OUT YOUR VACATION HOME FOR LESS THAN 15 DAYS PER YEAR:
You generally DON'T have to pay federal income taxes on the rental income from a vacation home that you rent out for less than 15 days per year. Also, if you itemize tax deductions on Schedule A, you may be able to deduct the mortgage interest on a vacation home if you rent it out for less than 15 days per year and if you meet all other criteria.
IF YOU RENT OUT YOUR VACATION HOME FOR 15 DAYS OR MORE PER YEAR:
You DO have to pay federal income taxes on the rental income from a vacation home that you rent out for 15 days or more per year. Also, the tax deduction rules get more complicated if you rent out your vacation home for 15 days or more per year.
PLEASE NOTE: THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE PERTAINING TO YOUR SITUATION. FOR MORE INFORMATION, PLEASE REFERENCE IRS PUBLICATION 527.
Rental income is generally tax-free if you rent out your vacation home for less than 15 days per year.
Source: Momentifi