For owners of vacation homes or properties in tourist-friendly areas, here’s a money-making tip.
If there’s a major sporting event or arts festival in their town, make some extra money by renting your primary or vacation home to tourists and moving elsewhere for a couple of weeks.
If you rent your home for 14 days or less in a given year, you don’t have to pay any tax on the rental income, says Bob Scharin, senior tax analyst for Thomson Reuters. You don’t even have to report the income to the IRS, he says.
If you rent your vacation home for more than 14 days, you’ll have to report the income on Schedule E when you file your tax return. That’s not as bad as it sounds, because you’ll also be permitted to deduct expenses, such as insurance, utilities, property management fees, and depreciation.
Source: USA Today, Sandra Block