Little Known Fact About Renting Your Home

little known fact about renting your homePlanning to attend a major sporting event but don’t have a place to stay. Think about the fact that each year there are homeowners around major sporting events that rent their homes for premium prices because there are little to no hotel rooms available. And the demand for renting private residences is up…for instance AirBnB.

These homeowners will take short vacations and then make tax-free bank while temporary renters rent the home. There is a little-known provision in the tax code that says taxpayers do no have to recognize rental income from their home if it is rented less than 15 days per year. The IRS provides a guideline called Plan Ahead for Tax Time When Renting Out Residential or Vacation Property.

Homeowners near large sporting events such as a golf course or tennis tournaments, championship games and other high attendance venues like the Super Bowl can take advantage of this provision. Staying in a private residence can be more attractive than staying in a hotel which increases prices during the event.

You will have challenges with personal belongings and maybe some damage but receiving a premium rental rate and not having to claim the income can be worthwhile. I advise you to talk with your tax advisor before you decide to do it. You may also want to enlist the help of a professional Realtor® like me. Contact me today to discuss it!

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