Did you know that you can rent your primary home for up to 14 days per year TAX FREE!?!IRS Publication 527, which discusses rental income taxation and expenses, reads as follows:
Rental of property also used as a home:
"If you rent property that you also use as your home and you rent it fewer than 15 days during the tax year, do not include the rent you receive in your income and do not deduct rental expenses..."
Frequent OMB! readers may recall that I live in DC. We are trying to earn some extra cash by renting out our apartment during the inauguration for 4 nights at $650 per night. This income would be 100% tax free!
There are even homes in Georgetown asking $30,000 for 4 days use! I've also heard about homes that are rented near Augusta, Georgia for the Masters Golf Tournament every year for $25,000 - $75,000 a pop -- all 100% tax free.
Keep this in mind for your own living arrangements the next time there is a big event in town!
UPDATE: I just found this official DC guidance on taxes as well: http://newsroom.dc.gov/show.aspx/agency/otr/section/2/release/15480/year/2008
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