“The Taxman” – The Beatles
Do you have a 2nd home or have you ever considered purchasing one? Have you ever considered renting out your primary residence while gone on business or vacation? Did you know that homeowners can benefit from a little known provision in the tax code that does not require taxpayers to recognize the income derived from renting their home for less than 15 days per year. See Rental of property also used as home on IRS.gov. I’m always interested in legal ways to protect income from taxes! :-)
Large sporting events like golf and tennis tournaments, championship games and other high attendance events increase the demand for a temporary rental of a private residence. Obviously, there are challenges with personal belongings and damage but getting a premium rental rate with a substantial deposit and not having to recognize the income could be worth it. Just a thought!
You’ll certainly want to discuss this with your tax professional prior to making this decision. You’ll probably also want to get some help from an experienced real estate professional.