Deciding To Rent Out Is Tough, But Spare Homes Pay Their Way
Own a spare home? Many who do cash in by renting them out. Whether that’s personally worth it depends on circumstances, objectives, and changing wrinkles in the tax code.
Physician Dorothy Dugger offered to rent out her home near Tampa, Fla., for the Super Bowl.
“According to my accountant it’s tax-free money,” she said.
It is. She’ll owe no federal tax on up to 14 days’ rental income a year, but cannot deduct expenses. Renting a 15th day makes all income taxable.