Loophole allows homeowners to rent property tax free
Business or pleasure can take you away from home, but that doesn't mean it has to feel like it.
"You don't want to be in a sterile hotel," said Bill Snelgrove from Buffalo, NY. "You want to be somewhere that reminds you a little bit of home, right?"
"I feel like I'm in other people's space, so I'd rather stay in a nice, clean hotel," said Patrick McDonald of Oshkosh.
Homeowners list their properties on sites like Airbnb, giving travelers a place to stay, whether it's short or long term.
"I'm from Oshkosh, so we have EAA every year and a lot of people rent out their homes for everybody who fly's in," McDonald said. "So I'd consider renting it out."
"I would not want people staying at my home unless it was an expensive vacation home that I had to pay for," said Snelgrove.
A special rule won't change Snelgrove's mind, but it could help others decide to jump in the market.
The IRS states that if person rents their house or apartment for less than 15 days a year, they do not have to pay taxes on the rental income.
Experts say specific events like Summerfest, Harley Fest and the 2017 U.S. Open golf tournament at Erin Hills are opportunities to capitalize on the loophole.
On local-based website, www.my-dwelling.com, some people are listing their homes for thousands a week, a chance to earn tens of thousands tax free, in just days.
"We're receiving on a daily basis quite a few inquires for people wanting to rent out their home for that event," said Mark Wiener, the website's managing broker.
Wiener said his team of licensed agents can walk people through the process of pricing, showing and choosing the right visitors to rent their space.
"Not every home needs to be on the lake. It's more convenience for people who are coming on in," he said. "When a property is priced correctly and shows well, it's going to rent."
It's important to note that cities or counties may have an occupancy tax, so make sure to research your local requirements before renting.