How to Earn Tax-Free Rental Income — Legally

Source: Kiplinger

Here’s how it works: You can rent out your personal residence (e.g., primary, secondary, or vacation home) during a significant event, for example, and any money earned from the short-term rental isn’t subject to income tax if the rental period doesn’t exceed 14 days in the tax year. That applies to any amount you charge for the rental. 

However, the income generated becomes taxable if you rent your personal residence for more than 14 days in a tax year. As a result, keeping track of your rental days with good documentation is crucial. 

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