Flagel's Helpful Hints

Personal Use of Business Property (Condo, Timeshare, etc.)

Question: I rent my home out for two weeks each year. Do I have to show the income on my return?

Answer: You must first consider if you use any dwelling as a home.

You are considered to use a dwelling as a home if you use it for personal purposes during the tax year for more than the greater of:

	14 days
	10% of the total days it is rented to others at a fair rental price

There is a special rule if you use a dwelling as a home and rent it for fewer than 15 days. In this case:

	Do not report any of the rental income.
	Do not deduct any expenses as rental expenses.
	If you itemize your deduction on Form 1040, Schedule A, Itemized Deductions, you may be able to deduct mortgage interest, property taxes, and any casualty losses.

It is possible that you will use more than one dwelling unit as a home during the year. For example, if you live in your main dwelling unit for 11 months and in your vacation home for 30 days, your main dwelling unit is a home and your vacation dwelling unit is also a home unless you rent your vacation dwelling unit to others at a fair rental value for more than 300 days during the year.

Additional Information:

	Tax Topic 415, Renting Vacation Property/Renting to Relatives
	Publication 527, Residential Rental Property (Including Rental of Vacation Homes).