People often rent out their residential property as a source of income, particularly during the vacation-heavy, warm summer months. Different tax rules apply depending on if the taxpayer renting the property used the property as a residence at any time during the year. To help taxpayers avoid a sweat at tax time, the IRS wants taxpayers to know the facts about reporting rental income.
Residential Rental Property
Residential rental property can include a single house, apartment, condominium, mobile home, vacation home or similar property. These properties are often referred to as dwellings. Taxpayers renting property can use more than one dwelling as a residence during the year.
A dwelling is considered a residence if it’s used for personal purposes during the tax year for more than the greater of 14 days or 10 percent of the total days rented to others at a fair rental value. In general, personal use includes use of the property by:
Recent Comments