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Tax tip: Count your days at a vacation home

by on
in Small Business Tax,Small Business Tax Deduction Strategies

The tax law limits write-offs for vacation home rentals if your personal use exceeds the greater of 14 days or 10% of the days the home is rented. In that case, your deductions are limited to the amount of your rental income.

Strategy: Make sure your annual use doesn’t cross the 14-day/10% barrier. For instance, if necessary, you might go home a day early or rent the home an extra week.

If you spend a spring weekend tidying up the place for the coming season, those days don’t count as “personal use” days—even if other family members tag along for other purposes. 

{ 1 comment… read it below or add one }

NM December 16, 2011 at 5:45 pm

This is a very interesting issue and I would like to discuss more. Please contact me at the above email.

Thanks

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