If you are operating a vacation rental home it is important that you are also aware of the tax implications. The calculation of tax liability is not very straightforward and there are some ifs and buts which will have an impact on your tax liability. Your tax liability will change depending upon how you put your vacation rental home to use.
It is quite common to see vacation rental home owners using the property for their own recreation and renting it out while it is not in use.
Discussed here are tax implications in three different ways you put your vacation rental to use. Being aware of the tax laws will help you use your rental home judiciously.