Do you have a spare bedroom(s) that you’d like to rent out?
Go right ahead. I’m sure you’d like to pocket some extra cash and put that spare room to use.
But be careful. You see, the IRS has set some dangerous traps for you that could cost you big money.
If you want to stay on Uncle Sam’s good side, take my advice and read my new article titled Tax Tips: Secrets to Pocketing Cash by Renting a Bedroom in Your Home
Three ways our fact-filled article can help you:
- You’ll learn how the bedroom rental triggers either Section 280A or Section 469. This bit of tax law governs whether or not you face the vacation-home rules. You’ll learn the magic of how this works to your benefit and keeps the IRS happy when you read the full article.
- We’ll show you how to pass the “for-profit” test. If the IRS audits you and you escaped the vacation home rules, they’ll likely claim that you didn’t rent out your extra bedroom for profit. Instead, they’ll argue that your rental activities are a “hobby.” (I know. Some hobby!) But don’t worry. We’ll show you how to pass the for-profit test with flying colors when you read the full article.
- You’ll learn how to avoid “passive loss” problems. If you want to take advantage of all the deductions coming to you, immediately and over time, you need to comply with Section 469 passive loss rules. We’ll show you the passive-loss transient-rule escape step by step, when you read the full article.