I am always on the lookout to help owners of northern Virginia real estate benefit as much as possible from their home investment. Did you know that you can rent out part or your entire home and not have to declare that rental income? You as a homeowner 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 Rental of property also used as home on IRS.gov.
You can benefit from a popular local event or nearby college football weekend by renting out your home to visitors for those occasions. According to the above IRS document, if you rent your home for less than 15 days in a tax year for these kinds of purposes, you do not have to pay taxes on any fair market rental income that you charge. Be sure, however, not to go over the 14 day maximum in any given year. Also be aware that the IRS does not consider discounted rents below market value or free housing to relatives in determining days of rental.
The stipulations are very specific and depend on percentages of personal use versus rental use. Short-term rentals of unoccupied northern Virginia homes for sale may not qualify. Be sure to talk to your tax professional for more advice on taking advantage of this tax tip.
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