the 14 day rule in short term rentals

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the 14 day rule in short term rentals

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

So I understand the owner can use the property 14 nights a year and nights where they are working on the property..

can the owner also just rent their own unit ? pay fare market rate .. would cost them PM fee i guess if they have a PM and cleaning fee unless they wanted to do the turn themselves. ??

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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
15h

Jay, I’d be careful with the idea of renting the property to yourself at fair market rent. If you or another owner uses the property, that generally counts as personal use, so simply paying yourself rent doesn’t turn those days into normal third-party rental days.

The 14-day rule is also a little more nuanced than simply saying “I can use it for 14 days.” The comparison is generally 14 days or 10% of the days rented to others at a fair rental price, whichever is greater, and that can affect how the property is treated and how much of the expenses are deductible.

For the days you’re actually working on the property, there are specific rules around repair and maintenance days as well, so I’d keep a clean calendar showing guest stays, personal-use days, and days spent working on the property.

I’d definitely confirm the details with your CPA before trying to structure the use this way. The “rent it to yourself” approach sounds creative, but I wouldn’t build a tax strategy around it. 

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  • Clever Mukori
    Member since 2026 · 29 posts · 11 votes
    1d

    I'd be careful with that one. My understanding is that under the vacation home rules (Section 280A), any day you or your family stay there counts as a personal use day even if you pay full market rent, so renting it to yourself doesn't turn it into a rental day. The days that don't count against you are ones where you're working on repairs or maintenance substantially full time, so a dated log with photos and receipts for those trips is worth keeping. I'd confirm with a CPA before relying on it, since going over the limit (the greater of 14 days or 10% of rented days) changes how your expenses can be deducted.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1d

    @Christopher Tile what are your thoughts on this?

    Could always be creative and have a friend pay full price for you :)

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    • Christopher Tile
      Accountant · Long Island, NY · Member since 2021 · 189 posts · 153 votes
      9h

      @Andrew Steffens My thoughts would be to take the safer route. Have at least 4 hours of work to log on the days you use it personally (substantially full-time basis = 4-6 hours), so we don't treat the day as a personal day. Any time I'm on site at my STR, I know I'm working haha.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    15h

    Jay, I’d be careful with the idea of renting the property to yourself at fair market rent. If you or another owner uses the property, that generally counts as personal use, so simply paying yourself rent doesn’t turn those days into normal third-party rental days.

    The 14-day rule is also a little more nuanced than simply saying “I can use it for 14 days.” The comparison is generally 14 days or 10% of the days rented to others at a fair rental price, whichever is greater, and that can affect how the property is treated and how much of the expenses are deductible.

    For the days you’re actually working on the property, there are specific rules around repair and maintenance days as well, so I’d keep a clean calendar showing guest stays, personal-use days, and days spent working on the property.

    I’d definitely confirm the details with your CPA before trying to structure the use this way. The “rent it to yourself” approach sounds creative, but I wouldn’t build a tax strategy around it. 

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3h

    I thought you could rent out your home, primary or 2nd home (vacation) up to 14 days each year and NOT have to claim the income?

    Why would you be limited on using your own STR and who is going to know anyways?

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