Mark Kohler explains the federal 14-day rule that can make short-term rentals tax-free during major events like the Super Bowl and Masters. He covers state conformity issues, local taxes, registration requirements, and what you need to know about contracts, deposits, and liability insurance.
Chapters
Can you really rent your house for 50 grand, 100 grand, and pay zero taxes during the Super Bowl? Well, we're going to clear up some misconceptions, but there's, there's a lot of truth to it. It's pretty cool. If you rent your home for less than 14 days out of the year under federal law, not taxable. Keep the money, keep it and run. We do not care. The IRS says, well, all these folks down in Augusta, Georgia that were renting out their home during the Masters were like, oh, this is sweet. I am not going to rent my place for more than 14 days and I get to keep all that money tax free. But you want to look at the state rule and see if your state conforms with the Fed' on this issue. With that said, the third tip is make sure you look at your local short term rental taxes. And if you need to register your rental, let's say you rent your house to this family and they destroy the house. Got to make sure you've got proper deposits, proper contracts, proper agreements. Next issue, they create a liability. Do you have liability coverage for anything that could go wrong?
