taxmap/pubs/p527-000.htm#en_us_publink1000218940Publication 527
(Including Rental of Vacation Homes)
For the latest information about developments related to Publication 527, such as legislation enacted after it was published, go to
www.irs.gov/pub527.
Tax-free exchange of rental property used for personal purposes.
(p1)You may qualify for a tax-free exchange (a like-kind or section 1031 exchange) of one piece of rental property you own for a similar piece of rental property, even if you have used the rental property for personal purposes. You must meet the following
criteria.
- You own the rental property for at least 24 months before the
exchange.
- During the 2 years before the exchange you rent the property to another person at a fair rental price for 14 days or
more.
- Your personal use of the rental property during each of the two years before the exchange does not exceed the greater of 14 days or 10% of the number of days the property is
rented.
For information on like-kind exchanges, see Publication
544, Sales and Other Dispositions of Assets, chapter 1.
Photographs of missing children.
(p2)The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a
child.
Do you own a second house that you rent out all the time? Do you own a vacation home that you rent out when you or your family isn't using
it?
These are two common types of residential rental activities discussed in this publication. In most cases, all rental income must be reported on your tax return, but there are differences in the expenses you are allowed to deduct and in the way the rental activity is reported on your
return.
First, this publication will look at the rental-for-profit activity in which there is no personal use of the property. We will look at types of income and when each is reported, and at types of expenses and which are deductible.
Chapter 2
discusses depreciation as it applies to your rental real estate
activity—what property can be depreciated and how to figure it.
Chapter 3
covers the actual reporting of your rental income and deductions, including
casualties and thefts, limitations on losses, and claiming the correct amount of
depreciation.
Special rental situations are grouped together in
chapter 4. These include condominiums, cooperatives, property changed to rental use, renting only part of your property, and a not-for-profit rental
activity.
Finally, in
chapter 5, we will look at the rules for rental income and expenses when there is also personal use of the dwelling unit, such as a vacation
home.
For information on how to figure and report any gain or loss from the sale or other disposition of your rental property, see Publication
544.
For information on how to figure and report any gain or loss from the sale or other disposition of your main home that you also used as rental property, see Publication
523, Selling Your Home.
We welcome your comments about this publication and your suggestions for future
editions.
You can write to us at the following address:
Internal Revenue Service
Individual and Specialty Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your
correspondence.
You can email us at
taxforms@irs.gov. Please put "Publications Comment" on the subject line. You can also send us comments from
www.irs.gov/formspubs/. Select "Comment on Tax Forms and Publications" under "More
Information."
Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax
products.
taxmap/pubs/p527-000.htm#en_us_publink1000290661Visit
www.irs.gov/formspubs/
to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or
write to the address below and receive a response within 10 days after your
request is received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613If you have a tax question, check the information available on IRS.gov or call 1-800-829-1040. We cannot answer tax questions sent to either of the above
addresses.
taxmap/pubs/p527-000.htm#TXMP31473121Useful items
You may want to see:
Publication 463 Travel, Entertainment, Gift, and Car Expenses 523 Selling Your Home 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts
551 Basis of Assets 925 Passive Activity and At-Risk Rules 946 How To Depreciate Property Form (and Instructions) 4562:
Depreciation and Amortization 5213:
Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for
Profit 8582:
Passive Activity Loss Limitations Schedule E (Form 1040):
Supplemental Income and Loss taxmap/pubs/p527-000.htm#en_us_publink1000218956See
chapter 6,
How To Get Tax Help, for information about getting these publications and forms.
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