Surprise When Renting Your Home

Dated: 01/02/2018

Views: 41

Image titlePlanning to go to the Masters next April 2-9th and don’t have a place to stay. Each year, there are homeowners who rent their home for a big premium during the Masters because hotels are in short supply and demand for private homes is up.

Homeowners go on vacation and make tax-free income while temporary tenants rent their home. Homeowners can benefit from a little known provision in the tax code that does not require taxpayers to recognize the income derived from renting their home for less than 15 days per year. See Plan Ahead for Tax Time When Renting Out Residential or Vacation Property- special rules.

This situation can particularly benefit homeowners where there are large sporting events nearby like golf and tennis tournaments, championship games or other high attendance venues. The demand for a private residence can be more attractive than staying in a hotel which makes the price go up.

Obviously, there are challenges with personal belongings and damage but getting a premium rental rate and not having to recognize the income could be worth it. You’ll certainly want to discuss this with your tax professional prior to making this decision. You’d probably also want to get some help from an experienced real estate professional.

Blog author image

Mary Ann Lightfoot

Originally from Chicago, IL. I started in Real Estate in 2000 selling new homes for an Age Restricted 55+ Community and became a licensed Full-Time General Realtor in 2005. I’ve been representing ....

Latest Blog Posts

Want To Meet The Courageous Parkland Florida Kids Here In Las Vegas

The Marjorie Stoneman Douglas High School's survivor's March for our Lives Road Trip hits Las Vegas tonight. You know those Parkland, Florida kids. They are the high schoolers 

Read More

Hot Yoga Happens Outside At The Neon Museum Boneyard

Most hot yoga classes are taught in studios with the heat cranked up. The Neon Museum came up with a novel idea: let the sun do the heating! We live in Las Vegas!!!!!Eileen Lorraine leads a 60

Read More

A Word Homeowners Need To Understand

Acquisition Debt is the amount of money borrowed used to buy, build or improve a principal residence or second home. Under the new tax law, mortgages taken after 12/14/17 are limited to a

Read More

Las Vegas Real Estate Market Report July 6 2018

Las Vegas Real Estate Market Report July 6 2018The amount of Las Vegas homes for sale that do not have contracts on them is about 4,800 homes.There are about 4,400 homes that already

Read More