The tax law permits a homeowner to rent a home for up to 14 days a year and pay no tax on the rental income. There is no requirement that these days be consecutive; you don’t even have to report this income on your tax return. However, if you go over the 14-day mark, even by one day, all of the rental income must be reported.
Section 280A(g) of the tax code says that if a “dwelling unit” is used as a residence and rented for less than 15 days during a year:
No deductions are allowed, owing to the rental use; and
The income from such a rental won’t be included in gross income.
Thus, it is important that you qualify a home as a residence, under the tax code. To do so, you must use the home personally for more than 14 days. A boat or a motor home might qualify, too, as long as there are toilet facilities, running water, a kitchen or galley, and a sleeping area.
