DawnC
Expert Alumni

Investors & landlords

  • Under the 14-day rule, you don't report any of the income you earn from a short-term rental, as long as you rent the property (or room) for no more than 14 days during the year, and you use the property yourself for 14 days or more during the year.
  • Even if you meet the 14-day rule, companies like Airbnb, HomeAway, or VRBO may report income for a short-term rental to the IRS on a Form 1099-K. You can add the income to your tax return as additional income, and subtract it as an adjustment to income, noting that it qualifies for the 14-day exception.
  • If you rent for longer than the 14-day exception period, detail the dates precisely so you can properly calculate personal and business expenses.
  • You can deduct all “ordinary and necessary” expenses to operate your rental business, including guest-service fees unless you use the 14-day rule. In this case, since the income doesn't have to be claimed, the expenses cannot be claimed either.

10 Tax Tips for Vacation Rentals

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