Q. I’ve been renting my apartment through a local web site when I’m going to be out of town. Is this rent considered income? The apartment is my only home.
A. It’s nice to get some extra income.
Whether you report the rental of your home depends on how many days the property is used for rental purposes, said Gail Rosen, a Martinsville-based certified public accountant.
“If you rent your residence for less than 15 days during the tax year, then you do not have to report the rental income,” she said.
If that’s the case, you also can’t deduct any expenses related to the rental.
But if you rent it for more than 14 days, the income would be taxable, Rosen said.
Yes, the “15” and “14” may seem a bit confusing, but well, that’s the IRS for you.
“Rental expenses incurred during the period that it is rented out would be deductible and reduce the rental income,” she said. “The income and expenses for the rental would be reported on Schedule E of Form 1040.”
In case your tenants don’t pay their rent, get a few tips here.
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