YOUR VACATION HOME COULD PROVIDE TAX-FREE INCOME.

This article from Kiplinger Personal Finance discusses the tax implications of renting out a vacation home. If you rent your vacation home for 14 days or less during the year, you are not required to report rental income on your tax return. This rule also applies to your primary residence. However, if you exceed the 14-day threshold, you must report rental income to the IRS and you will be eligible for deductions that can reduce your tax bill. The article provides information on how to determine whether your vacation home is considered a business or a personal residence for tax purposes. Additionally, the article includes a table of top places to buy a vacation home based on rental income rate of return. [Extracted from the article]