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Vacation Rental Income Can Be Tax Free

Need extra cash? Rent out or barter your vacation home. If you do so for no more than 14 days a year you�re eligible for a special tax exemption. Any rental income you collect within that period is tax-free. The income doesn�t even have to be reported on your tax return.

If you rent out your vacation home for more than 14 days a year, all your rental income is subject to tax, including those first two weeks. However, you�ll be eligible to write-off rental-related expenses such as maintenance, utilities and depreciation, up to certain amounts. For specifics, contact your CPA or tax advisor.

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