What is the 14 day rule for the IRS?

Rental Property / Personal Use You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for a number of days that's more than the greater of: 14 days, or. 10% of the total days you rent it to others at a fair rental price.



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A second home is typically thought of as a vacation home, or one you intend to use on a part-time basis. A second home must meet the following criteria to qualify for a second home loan: The property must be suitable for year-round occupancy, even if you only intend to use it part of the year.

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Ultimately, whether or not a vacation home pays for itself depends on several factors such as location and rental income potential.

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If you choose to rent out a second home, you may be subject to income tax on rental earnings if you rent for more than 14 days. It's a good idea to consult with your tax advisor and financial professional before purchasing a second home to explore how it might affect your financial goals.

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Two-week vacations, says Krause, should be only taken for special times, such as a wedding and honeymoon, a trip very far away, or a once in a lifetime trip. “Otherwise, one week or less is enough to recharge and not leave your responsibilities to flounder,” Krause continues.

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