No, it is not hobby income. If you rent for less than 14 days per year, you don't have to claim any of the income. However, to qualify, you must:
- Rent part or your entire house for no more than 14 days during the year
- Live in the house yourself for more than 14 days during the year, or at least 10% of the time that you rent it to others.
Master's Rule
Depreciation has to be recaptured when you sell the property, whether you took the deductions or not.
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