What You Need to Know About Taxes on Rental Income
Before renting out your home, familiarize yourself with the tax implications.
Question: I’m thinking about renting out my house for a few weeks while I’m away on vacation this summer. What do I need to know about taxes? - B.G., New Orleans
Answer: If you rent out your house for 14 or fewer days per year but you live there the rest of the time, the rental income is tax-free (but you can’t deduct rental expenses). If you rent out your house for more than 14 days per year, you must report your rental income when you file your tax return. You can also deduct rental expenses, generally based on the portion of the year that you rented your home. For details, see IRS Publication 527.