If you rent your house out, you are required to report the rental income in schedule E. Is there any exception?

Yes! As long as you rent it out for less than 14 days in a year, you do not need to report the rental income you receive under section 280A.

Count the days you rent if you are renting through Airbnb before you report anything in schedule E!

certainly, you can’t deduct any rental expense neither when the rents income is not reportable.

If you own a s-corporation or c-corporation, can the business pays rent and take tax deduction for employee retreat or holiday parties?

Yes, as long as the rent is at fair market value, and the expenses are ordinary and necessary, the business can take the tax deduction for the rental expenses. For example, if your corporation pays you $1,000 per day for the employee retreat or employee holiday party for twice a year, your corporation can deduct these rental expenses 100%.

At your personal income tax, you don’t report any rental income as the rental days are less than 14 days a year.

Do you like this strategy when your corporation can take tax deduction while you don’t report it as income at your personal level?






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