This article is the sixth of ten tips for reducing taxes during the summer.
Tip 6: Minimize Vacation Home Use
Federal tax law allows deductible expenses relating to renting out a vacation home to offset rental income. With summer already underway, you have probably created a rental schedule for your vacation home, but remember that you cannot deduct a loss if your personal use of the home exceeds the greater of 14 days or 10% of the time the home is rented out. If you expect to experience a loss, watch your personal use to ensure you remain below the 14-day or 10% limit. Other rules, however, may still limit your loss deduction.