Some tax-free income never hurts
Many taxpayers often leave town when a local festival or event draws in tourists. If you’re one of them, you might be able to rent out your house for a few days and earn tax-free income.
Taxpayers who rent out their own homes for fewer than 15 days per year receive tax-free income from the rental. To qualify for this tax-free treatment, you must rent out your home for 14 days or less and personally use the home for 15 days or more during the year.
Please note, no deduction is allowed for any rental-related expense, such as getting the house professionally cleaned before or after your visitors arrive. However, deductions of mortgage interest and property taxes are allowed on Schedule A for the entire year.
Furthermore, there may be local taxes you need to be aware of when renting your home temporarily. Please check with your local city treasurer.