A Nice Surprise When Renting Your Vancouver WA Home

Planning to go to the Masters Golf Tournament next April 2-9th and don’t have a place to stay? Each year, there are homeowners who rent their home for a big premium during the Masters because hotels are in short supply with premium prices, and demand for private homes is up.
Homeowners go on vacation and make tax-free income while temporary tenants rent their home. Homeowners can benefit from a little known provision in the tax code that does not require taxpayers to recognize the income derived from renting their home for less than 15 days per year. See Plan Ahead for Tax Time When Renting Out Residential or Vacation Property- special rules.
This situation can particularly benefit homeowners where there are large sporting events nearby like golf and tennis tournaments, championship games or other high attendance venues. The demand for a private residence can be more attractive than staying in a hotel which makes the price go up.
Here in Vancouver WA we may not have the Huge Convention or Sports Arena type event however, our area is attractive in the summer season and the local hotels fill up; or, you may have that vacation cabin at the beach that you don't use the entire summer.
Obviously, there are challenges with personal belongings and insuring for damage but getting a premium rental rate and not having to recognize the income could be worth it. You’ll certainly want to discuss this with your tax professional prior to making this decision. You’d probably also want to get some help from an experienced real estate professional.
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PS - 2018 is already starting out with our local market being very hot for homes and real estate. If you are thinking about selling please contact us for your Free Market Analysis!