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If you use your vacation rental for less than 14 days or for 10 percent or less of the total annual rented days (whichever is greater), your vacation rental is classified by the IRS as a full-time rental business. This is called the 14-day rule. Full-time rental businesses are eligible for “ordinary and necessary” tax deductions related to business expenses, some of which may surprise you. Here are ten tax deductions all short-term and vacation rental operators should be taking advantage of:
Keep in mind that in order to take advantage of these deductions, all expenses must be tracked. If you need help with tracking, check out the Cozy Expense Tracking Tool. For more vacation rental tips, check out the "Vacation Rentals" section of our blog, and for more investor insights, check out our Resources Page.