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USTaxAdvising
USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1237
Experience:  US Taxation specialist.
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To whom it may concern: I travel extensively throughout the

Customer Question

To whom it may concern:
I travel extensively for work throughout the USA and Canada and often stay in hotels through the week and weekends.
I currently own a home in Florida and don't own or rent any other property.
I have chosen to rent out my property intermittently to offset the expenses since it is in a popular tourist area.
What % of the year can I rent it out and still have it qualify as my primary residence for tax purposes?
Note: I purchased the home at the end of May and will have owned it for about 250 days by the end of this calendar year.
Note 2: Between the dates already rented and bookings through December 31st of this year, I could have it rented over 110 days.
Is there anything else I need to know or resources I can read up on to ensure I handle this correctly.
Thanks in advance
Submitted: 1 year ago.
Category: Tax
Expert:  USTaxAdvising replied 1 year ago.

Hello,

The home can be your primary residence regardless of how long you live there during a tax year. IRS Publication 523 states that your primary residence is your "Main Home".

Main Home

If you own or live in more than one home, the test for determining which one is your main home is a “facts and circumstances” test.

The most important factor is where you spend the most time. However, other factors can enter the picture as well. The more of these that are true of a home, the more likely it is your main home:

  • The address listed on your:

    1. U.S. Postal Service address,

    2. Voter Registration Card,

    3. Federal and state tax returns, and

    4. Driver's license or car registration.

The home is near:

  1. Where you work,

  2. Where you bank,

  3. The residence of one or more family members, and

  4. Recreational clubs or religious organizations of which you are a member.

http://www.irs.gov/publications/p523/ar02.html#en_US_2014_publink100025053

So the home can be your primary residence regardless of long you actually reside in the home due to your working travel requirements.

You will need to keep good records of your rental days and income/expenses and report them annually via Schedule E of your Form 1040.

Here is a good resource for your review - http://www.irs.gov/taxtopics/tc415.html

Note that if and when you sell the home, and if at a gain, part of the gain main not qualify for exclusion. See link here for more information - http://www.irs.gov/publications/p523/ar02.html#en_US_2014_publink1000200611

I hope that provides the information you were looking for. Please let me know if something is not clear and I will get back to you as soon as I am able.

Best regards,