Do you know that you can earn tax-free money if you rent your home less than 15 days a year? It has become very popular in Southern California and in rest of the world to supplement income by renting out your own home, a guest house, or just a room for few days or weeks at a time.
To simplify IRS rules for you, here is a summary of Vacation Home Rentals Rules for Primary Personal Usage:
Rented less than 15 days
There is no limit for personal days use
The income does not have to be reported. It is not taxable! Mortgage interest and property taxes are allowed as itemized deductions, as with any personal residence.
Net loss treatment is not allowed. None of the net income or net loss is reported.
Please feel free to contact us if you have any questions about your rental income.
EZ Tax & Accounting, Inc.
3520 College Blvd., Suite 204
Oceanside, CA 92056