Do you own a vacation home or condo? If the answer is yes, remember this… If you use your property for personal use and business lodging, you’re entitled to some valuable deductions. What’s more, you can avoid oppressive vacation-home, and passive-loss rules… rules that can cost you big money and big problems with the IRS. (NOTE: Because we’re in the midst of the … [Read more...]
Vacation Homes
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Will the Newly Released Section 199A Rental Safe Harbor Work for You?
Back in January 2019, the IRS provided you with a Section 199A safe-harbor option for your rental properties. This was great news because the safe harbor made it a lot easier for your rental properties to qualify for the valuable 20% Section 199A deduction. Now, nine months later, the IRS has issued the final version of the rental safe harbor and it includes some very … [Read more...]
Personal Use of Your Rental Triggers Ugly Vacation-Home Rules
Sole use dwellings: If you own a vacation home that only you use, your tax situation is pretty straightforward. Rental dwellings: If you rent a dwelling to a tenant who lives there exclusively, you’re also in good shape. Dual use: When you use the dwelling for both personal and rental use, you create the possibility of tax-free rent, rental property deductions, and extra … [Read more...]
Secrets to Pocketing Cash by Renting a Bedroom in Your Home
The Airbnb revolution is here. This means you might be considering renting out a bedroom in your home with Airbnb, another company, or on your own. Doing so could entitle you to some nice tax benefits. But be careful! The IRS rules governing bedroom rentals are complex, and if you don’t handle everything correctly, your visiting guest could wind up being an IRS … [Read more...]
Know These Tax Rules If Your Average Rental Is Seven Days or Less
Do you own a condominium, cottage, cabin, lake or beach home, ski lodge, or similar property? Do you rent it out for an “average” rental period of seven days or less? If you do, be aware. You have now landed in the “vacation hotel” area of the tax code … which can make things tricky. Of course, the job of the Tax Reduction Letter is to make things un-tricky which is … [Read more...]