Has anyone rented or considered renting their primary residence out for 14 days or less during the year to take advantage of the tax free income allowed by doing this? The IRS says that if rented for a fair market rate, rental income for 14 days or less is tax free. The days do not have to be consecutive.
Browsing Airbnb I see homes similar to ones we have looked at renting for $500+/night, some over $1000/night in peak times. I have no plans to factor in this possibility into the decision to purchase a certain home, but on the other hand, like many on this site, I am quite frugal and I don't think I could bring myself to pass up this type of tax free income if it were a possibility in whatever home we choose, and these 14 days could easily be coordinated to coincide with times we are traveling/visiting family.
My main concerns would be about the risks of doing this. Would potential liability or property damage make it not worth the risk? I have also heard of squatters in Airbnb properties which gives me pause.
Has anyone used their primary residence to generate income in other ways? We have looked at some homes with separate in-law/guest quarters and my frugal side starts to think of ways to rent this out to offset the costs of the property. I am interested to hear others' experiences. Should a primary residence and income generation be kept completely separate?
Browsing Airbnb I see homes similar to ones we have looked at renting for $500+/night, some over $1000/night in peak times. I have no plans to factor in this possibility into the decision to purchase a certain home, but on the other hand, like many on this site, I am quite frugal and I don't think I could bring myself to pass up this type of tax free income if it were a possibility in whatever home we choose, and these 14 days could easily be coordinated to coincide with times we are traveling/visiting family.
My main concerns would be about the risks of doing this. Would potential liability or property damage make it not worth the risk? I have also heard of squatters in Airbnb properties which gives me pause.
Has anyone used their primary residence to generate income in other ways? We have looked at some homes with separate in-law/guest quarters and my frugal side starts to think of ways to rent this out to offset the costs of the property. I am interested to hear others' experiences. Should a primary residence and income generation be kept completely separate?
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