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Paying Taxes on Vacation Rentals

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Paying Taxes on Vacation Rentals:

In most cases, if you rent out your home for fourteen days or more in one year, you will have to report your rental income on Schedule E. Always check with your accountant, state and federal laws.

Here are some deductible expenses:

1. Advertising – include online marketing sites, business cards, flyers, posters, banisters.
2. Cleaning and maintenance. Include annul painting, carpentry, plumbers, electricians.
3. Home Insurance – on vacation rental.
4. Condo fees- or road fees, community fees, pool fees, golf fees – (only if the renters can use it too).
5. Legal fees – only those pertaining to your vacation home.
6. Repairs – roof, construction, steps, landscaping, driveway, deck.
7. Supplies – paper goods, cleaning goods, lightbulbs, smoke detectors, batteries, linen, blankets.
8. Real Estate Taxes – only on your vacation rental.
9. Snow plowing, Pool Maintenance, Roof shoveling
10. Mortgage Interest paid to banks.
11. Commission fees paid out. Referral fees.
12. Utilities – electricity, gas, heating, oil, cable tv.
13. Telephone and Internet services, if used for vacation rental.
14. Office supplies, furniture, and equipment – only portion used for your rental business.
15. Auto and travel. – keep track all year of your mileage, tolls, gas receipts. You may be able to deduct these expenses on your tax returns, depending on your situation.
16. Housekeeper – If you hire a housekeeper, then you can deduct the expenses.

Always ask your accountant and be sure to check with your state, federal and local taxes.

Report all of your rental income. The security Deposit should be treated separately.

Marie R. Ferguson, author of “Breaking all the Rules: How to Rent Your Vacation Home”. Also available is Total Management for Your Vacation Rental – Organizer, Planner and Tax Preparer. Marie is an expert landlord of vacation rentals with over twenty years of experience in the financial and real estate industry. http://www.howtorentvacationhomes.com