Financial Planning Toolkit - Planning Tools

Worksheet to Compute the Limit on Rental Deductions for Vacation Homes

If you have a vacation home or some other property that you use as a personal residence for some of the time, and as a rental property for some of the time, you'll need to make some extra calculations before deducting your rental expenses.

More specifically, if you or your family members have lived in the home for more than the greater of 14 days, or 10 percent of the days it is rented out to others during the year; and if your rental expenses are greater than your rental income for the year, you will be limited in the amount of expenses you can deduct.

This worksheet will allow you to figure the amount of deductible expenses, and the amount of remaining expenses that can be carried over and deducted next year.

limit on rental deductions

The file is in Adobe portable document format (PDF), which requires the use of Adobe Acrobat Reader.

Adobe Acrobat Reader is available, without charge, at the Adobe website.

For more information, see our discussion of vacation home rentals.

Saving for Retirement Investing