Tax rules on rental income from a vacation home can be complicated, particularly if you rent the home out for several months of the year, but also use the home yourself.

There is however, one provision that is not complicated. Homeowners who rent out their property for 14 or fewer days a year can pocket the rental income, tax-free.

Known as the “Master’s exemption”, because it is used by homeowners, near the Augusta National Golf Club in Augusta, GA who rent out their homes during the Master’s Tournament (for as much as $20,000!). It is also used by homeowners who rent out their homes for movie productions or those whose residences are located near Super Bowl sites or national political conventions.

For instance, if you live close to a vacation destination such as the beach or mountains, you may be able to make some extra cash by renting out your home (principal residence) when you go on vacation–as long as it’s two weeks or less. And, although you can’t take depreciation or deduct for maintenance, you can deduct mortgage interest and property taxes on Schedule A.

In general, income from rental of a vacation home for 15 days or longer must be reported on your tax return on Schedule E, Supplemental Income and Loss. You should also keep in mind that the definition of a “vacation home” is not limited to a house. Apartments, condominiums, mobile homes, and boats are also considered vacation homes in the eyes of the IRS.

Further, the IRS states that a vacation home is considered a residence if personal use exceeds 14 days or more than 10% of the total days it is rented to others (if that figure is greater). When you use a vacation home as your residence and also rent it to others, you must divide the expenses between rental use and personal use, and you may not deduct the rental portion of the expenses in excess of the rental income.

For example, let’s say you own a house in the mountains and rent it out during ski season, typically between mid-December and mid-April. You and your family also vacation at the house for one week in October and two weeks in August. The rest of the time the house is unused.

The family uses the house for 21 days and it is rented out to others for 121 days for a total of 142 days of use during the year. In this scenario 85% of expenses such as mortgage interest, property taxes, maintenance, utilities, and depreciation can be written off against the rental income on Schedule E. As for the remaining 15% of expenses, only the owner’s mortgage interest and property taxes are deductible on Schedule A.

Questions about vacation home rental income? Give us a call. We’ll help you figure it out.

No one can escape the overwhelming spirit of Christmas. Almost every part of the world reverberates with cries of Merry Christmas on 25th December. Christmas remains one of the best times to plan your long haul overseas travel for a taste of festivities far away from home. However, booking of flights needs to be done well in advance so as those elusive cheap tickets do not slip out of grasp. However, quite a few airlines also offer some special Christmas deals. Here are some of the most popular Christmas destinations as revealed by online searches and other sources.

Paris

Paris, synonymous with fashion and glamour stays one of the hottest Christmas holiday destinations in the world ushers in the festival in its signature trendy style. Vanity shopping is as much a part of Christmas celebrations as is watching dazzling fireworks displays over a goblet of French wine. The Champs Elyses lights displays and Notre Dame Cathedral celebrations remain two of the biggest Christmas events in Paris.

Las Vegas

Everything in Las Vegas is larger than life and this rings true in the matter of Christmas celebrations as well. Every casino comes with terrific Christmas holiday ideas to make it an unforgettable night in Sin City. The Fremont Street Experience, Ethel M Chocolate Factory and Cactus Garden, Bellagio’s Conservatory & Botanical Gardens, and those glitzy shopping malls are the hottest places of Las Vegas on Christmas Eve.

New York

Although, the Big Apple is bursting with infectious energy and charm throughout the year, somehow, the same increases ten folds during Christmas. The Rockefeller Center with its gargantuan Christmas tree and the skating rink lures hoards of tourists and locals alike. Shopping at Fifth Avenue seems to take on a new meaning altogether, while the Saint Patricks mass and carriage riding around Central Park linger on as endearing memories.

Goa

Those who wish to celebrate Christmas at some exotic overseas beach destination would do well to consider Goa. This Indian destination preserves rich chunks of its Portuguese heritage and is an excellent fusion of modern style and old world charm. Christmas here means endless culinary delights, especially sea food, night to dawn beach parties, and gallons of booze. There are numerous churches and cathedrals for those who do not want to miss out upon the religious side of Christmas. Very understandably, Goa is a premiere choice for many planning their Christmas holiday breaks.

Bethlehem and Jerusalem

Bethlehem and Jerusalem quite deservedly enjoy a special status as far as Christmas holiday tours are concerned. While 25th December marks the celebrations by Roman Catholics and Protestants, 6th January comes alive with the version celebrated by Greeks, Syrians, and other Orthodox Christians.

Eurostar trains are the high speed trains that run at a top speed of 186 mph between London to Paris and Brussels. Since its inauguration in 1994 it has attracted high number of visitors and with a successful track record it is now the most reliable and highly used transport option for travelers. Although there are other options such as low cost flights to travel to Paris or Brussels from London but no one can beat trains. Here are some important benefits of travelling by Eurostar rather than flights.

1) Eurostar trains are known for their punctuality and on-time services. It has set a new punctuality record with 95% trains on time which is much higher than other forms of travel specially flights. So while travelling with Eurostar train you will be at your destination on time.

2) If you are travelling from London to Paris or Brussels by flights than you must be ready to spend a considerable time and money in reaching to airports that are situated at outer parts of London. But if you have decided to take train than reaching St. Pancras International railway station is very comfortable as it is located in the main city.

3) Check-in process at Eurostars railway station is very easy and you need to reach only 30 minutes prior to your schedule train. In case of taking flights you must reach around 1 to 1:30 hours before for check-in. Thus travelling by London Paris train or London Brussels train is less time consuming than taking flights.
Besides these facilities Eurostar also provides you several benefits such as 3 month advance ticket booking, 1 year advance ticket booking for group travel, faster services, facility of city breaks and many other deals by which you can save huge amount on your travel.

Island holiday Malaysia beckons the visitors to make the most of some spectacular time in complete leisure or and in the pursuit of adventure. There are lots of avenues open to the visitors. They can trek through the rainforest and view the variety of wildlife rich with flora and fauna in these places. There are a wide species of birds and animals which can be seen in their natural habitat. Those who are interested can go for diving adventures at the clear blue oceans, which maintained a rich marine life and spectacular coral reefs.

The island resort Malaysia complements the enriched natural bounty of this place. These blend in with the surrounding environments. The dcor and the architecture of these resorts include the traditional styles. Therefore, these places convey a sense of belonging to the islands, even if for a definite period of time. The accommodations here exude that culture of the place. These offer the ideal relaxing environment when the visitors come back from their exploration of the various islands.
This is what one can do during an island vacation in Malaysia.

Festivals and other general activities:

Those who are culturally inclined and wish to see the indigenous occasions in this part of the world can attend the annual festivals which burst with color and activities. For example, one can attend the birthday of the Malaysian Sultan during their stay. This is a week long festival where the fun and joy never stops. Then there is the international boat festival which is another annual occasion which is celebrated with all the pomp and gaiety.

Island holiday Malaysia can be as laid-back or as whirlwind based on the preferences of the visitors. Staying at the Malaysian longhouses require hiring local guides who can take the tourists in the villages situated along the rivers in Sarawak or Sabah. The central railways in Malaysia provide an opportunity to travel via train through the densest of forests in the region. This is a visual delight as well as a relaxing tour which is highly enjoyable in all respects. The restorative waters present at the Pedas Hot Springs is a visitors delight in all respects.

Adventure activities on the Malaysian Islands:

Adventure lovers will simply bask in the opportunities provided by the Malaysian vacation. The island resort Malaysia is located in the regions where there are numerous activities to be held at various levels of expertise and skill sets. One can go for diving and snorkeling along the gentle slopes of the coral reef or both for deep-sea diving for extreme adventure lovers. Even trekking opportunities can be chosen based on the tenacity of the participant. Malaysia holiday ensures that the fun never stops whatever be the expectation of the travelers.

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