Planning to go to the Masters in April and don’t have a place to stay? Each year, there are homeowners who rent their home for a big premium because hotels are in short supply and demand for private homes is up.
Homeowners go on vacation and make tax-free income while temporary tenants rent their home. 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 Plan Ahead for Tax Time When Renting Out Residential or Vacation Property- special rules.
This situation can particularly benefit homeowners where there are large sporting events nearby like golf and tennis tournaments, championship games or other high attendance venues. The demand for a private residence can be more attractive than staying in a hotel which makes the price go up.
Obviously, there are challenges with personal belongings and damage but removing your valuables and getting a premium rental rate without having to recognize the income could be worth it. Make sure you discuss this with your tax professional and a REALTOR prior to making this decision.
Let me know if I can help you!
