How much may I charge for renting my home or a part of my home?

If you plan to rent out your home, it is important that you charge a “fair rental price.”

A “fair rental price” will demonstrate you have a profit-seeking motive. If it turns out your have not demonstrated that you have a profit-seeking motive, your rental expense deductions may be limited.

It is prudent to do research on comparable rental homes in your area and to keep records of your findings, as well as any copies of advertisements, to demonstrate your profit-seeking motive, should you be audited.

The foregoing is not intended to be, and should not be construed to be, tax advice. This website offers general answers to general questions based on information obtained from www.irs.gov and other publicly available information. Collaborative Fund cannot be held responsible for the results of any position taken on a tax return by any user of this site. Users should always obtain independent tax advice from a qualified tax professional to determine the tax consequences applicable to such user’s personal situation.