Quick Answer: What Is Considered Personal Use Of Rental Property?

How many days can you use a rental property for personal use?

Rental Property / Personal Use

You’re considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for more than the greater of: 14 days, or.

10% of the total days you rent it to others at a fair rental price.

What is considered personal use of a vacation rental property?

Your property is considered a business if you use your vacation home for 14 days or fewer in a year, or less than 10 percent of the days it’s rented. Your property is considered a personal residence if you use it for more than 14 days or more than 10 percent of the days it’s rented.

What qualifies as rental income?

Rental income includes: Advance rent – Generally, you include any advance rent paid in income in the year you receive it regardless of the period covered or the method of accounting you use. Expenses paid by a tenant – If your tenant pays any of your expenses, those payments are rental income.

What is considered a day of personal use?

A day of personal use of a dwelling unit is any day that the unit is used by any of the following persons. You or any other person who owns an interest in it, unless you rent it to another owner as his or her main home under a shared equity financing agreement (defined later).