Under US tax code, free or below market rate family/friend stays count as personal use. If personal use days exceed 14 or 10% of your total annual rental days (whichever is greater), it will have an impact on your expense deductibility by making your rental house (or dedicated rental space you don’t otherwise use) your “residence.” Best to keep it at or below the 14 day annual limit if your are concerned about maximizing deductions or you have a loss and are in a position to take advantage of the $25,000 passive loss deduction.
Not a professional tax opinion, just discussion. Consult with your tax advisor.
Sincerely,
Annoying Accountant Forum Member
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I think it’s great that you contribute all this “non professional guidance” at no cost. I’m one of the many who is pretty sure I’m not doing my taxes correctly and am just hoping for the best.
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