If you rent a vacation home to tenants for more than 14 days a year, it will fall into one of two
categories:
Rental property: You have a rental property if
- Your personal use of the home is no more than 14 days and you rent your vacation home more
than 14 days; or
- Your personal use is more than 14 days yet this personal use is no more than 10 percent of
rental days.
Say you use your vacation home 20 days a year while renting it out 210 days. Your personal use is
less than 10 percent of your rental days so your vacation home is considered rental property.
Residence. In the above example, if you had rented the house only 199 days, your personal use
would have been over 10 percent of the rentals, so you would have a residence.
What
