Is your vacation home a personal residence or a rental property? It sure matters to the IRS!
The distinction has serious implications for how big your tax bill will be.
IMPORTANT FACT: If you have a home that you rent out and use personally, you have an IRS-defined “vacation home.” According to the IRS, your vacation home is either a personal residence or a rental property.
I’ll explain the complex rules that govern the rental-property scenario in my new April article titled Tax Issues When Your Vacation Home Is a Rental.
Three ways my fact-filled article can help you:
- You’ll learn how the IRS decides if your vacation home is a rental property. It’s classified as a rental if you rent it out more that a specific number of days. It’s also considered a rental if your personal use doesn’t exceed a certain number of days. How many? I’ll tell you when you READ the full article.
- You’ll learn why the IRS is not your PAL. PAL stands for “Passive Activity Losses.” PAL rules state that generally passive losses can only be used to offset passive income. How does this relate to you? You’ll find out more when you READ the full article.
- I’ll tell you why keeping good records is so important. To stay on the IRS’s good side, you’ll need to keep track of time. For full details, READ the full article.
Want to make sure you get all the deductions you’re entitled to?
I can help, if you…
CLICK HERE to get my complete article.
Tax Issues When Your Vacation Home Is a Rental
