Reporting Income from Vacation Property

Taxpayers who own summer rental properties have specific responsibilities when reporting income. They also have certain expenses they may deduct from their tax returns. Here are some tips for reporting income from rental properties.

Report Income and Expenses

If you rent your home, you may have to file multiple forms.

  • Schedule E: File Schedule E with your tax return when you report rental income.
  • Net Investment Income Tax: Determine whether your claims fall under the Net Investment Income Tax liability.
  • Schedule A: File Schedule A to report deductible expenses for personal use on the rental property. 

When to File

If you rent your dwelling for fewer than 15 days a year, you do not need to claim the income on your tax return. For rentals that exceed this timeframe, you need to report all income and expenses to the IRS. 

Other details may apply, and you can find more information on the IRS website.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.

Tip courtesy of IRS.gov[i]

[i] https://www.irs.gov/uac/newsroom/plan-ahead-for-tax-time-when-renting-out-residential-or-vacation-property

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