08/20/2026
Your vacation home can look like a rental on paper: and still be treated as a personal residence for tax purposes.
IRC §280A focuses on how the property is used, not simply how it is advertised.
📌 Key thresholds:
• Rented 14 days or fewer at fair rental value? Rental income is generally excluded under §280A(g), but rental expenses generally cannot be deducted.
• Rented more than 14 days? Personal use generally cannot exceed the greater of 14 days or 10% of the days rented at fair rental value if you want full rental treatment under §280A.
• Example: With 100 fair-rental days, the 10% figure is 10 days: so the greater threshold is 14 days. With 150 rental days, the threshold becomes 15 days.
🔍 Day-counting matters:
Owner or family use, below-market stays, and certain exchange or related-use arrangements may count as personal use. Days spent performing repairs or maintenance substantially full-time are generally treated differently. Keep a contemporaneous calendar, booking records, fair-rent support, and expense documentation.
If personal use crosses the applicable threshold, expenses must be allocated between rental and personal use. Rental deductions are generally limited to rental income, so a paper loss may not offset other income. Excess expenses may be limited or carried forward under applicable rules.
Most tax problems don't start with the IRS: they start with poor planning. Home-Snap () can help track property usage and expenses, while your tax strategy should be reviewed before the year closes.
Book your Tax Clarity Assessment™.
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