Rental Income Tax

Rental income from short-term rentals is generally taxable at the federal level and in most states. However, the IRS 14-day rule allows owners who rent their property for 14 days or fewer per year to exclude that income from their taxes. For properties rented more than 14 days, owners can deduct expenses including management fees, cleaning costs, mortgage interest, depreciation, insurance, and repairs. Consulting a tax professional familiar with STR regulations is strongly recommended for all rental property owners.