If you have a home that you both rent out and use personally, you have a tax code-defined vacation home. Under the tax code rules, that vacation home is either • a personal residence or• a rental property. The tax code classifies your vacation home as a rental...
Do you have a beach or mountain home that you rent out? If the average period of rental is less than 30 days, you likely have a choice—either • claim the income and expenses on Schedule C, or• claim the income and expenses on Schedule E. When Is Schedule C a Good...
Imagine this: your Schedule C business buys a home at the beach, uses it solely as an entertainment facility for business, pays off the mortgage, and deducts all the expenses. Is this possible? Yes. Are there some rules on this? Yes. Are the rules difficult? No....
Here’s a look at how to apply the $250,000 ($500,000, if married) principal residence tax break when getting married or divorced, or when converting another property into your home. In both marriage and divorce situations, a home sale often occurs. Of course, the...
Here’s good news. IRS regulations allow you to claim a prorated (reduced) gain exclusion—a percentage of the $250,000 or $500,000 exclusion in select circumstances. The prorated gain exclusion equals the full $250,000 or $500,000 figure (whichever would otherwise...
