taxes

Taxes on renting your second home

Bankrate Audio » Taxes On Renting Second Home

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Are you aware of the tax rules involved if you rent out your vacation home?

I'm Barbara Whelehan with the Bankrate.com Personal Finance Minute.

If you have a second home that you rent out for part or most of the year, you're generally going to have to account for it on your federal tax return.

The only time you won't is if you rent your property out for two weeks or less. That's also the case if you rent your primary residence for two weeks or less, even if you get $20,000 for the week those football fans leased your condo near the stadium.

However, don't overlook any state or local taxes that might be assessed on the rental of your home. State and local governments are desperately trying to shore up much needed revenues. So, for example, Texas charges a hotel occupancy tax; California, a transient occupancy tax, and Florida, a tourist impact tax. Think tax collectors from local jurisdictions will never find out? Possibly, but the same technology that helps you find renters can give them a glimpse of who's potentially making money by renting their home.

For more on this and other personal finance issues, visit Bankrate.com. I'm Barbara Whelehan.

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