Tax Free Rental Income

IRS publication 527; Topic 415 Rental Minimal Usage Rule states that a homeowner who rents out their personal property to another person for a period of less than 15 days DOES NOT have to report the rental income earned during that 14 day period.

As with advantages to the Minimal Usage Rental Rule there are disadvantages: You cannot not claim any rental expense that were incurred during the 14 day period in which the residence was used for rental. However, you can still deduct the itemized mortgage interest, taxes paid on the property, and any theft and casualty losses.

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