Vacation rentals and taxes

[Elisha Cram]

My husband and I bought his grandmother’s house last year and have fixed it up. We decided to use it as a vacation rental to offset the costs of owning and maintaining it. Our fIrst guests since the remodel are staying tonight.

I am curious if anyone who currently has vacation rentals can share what you set aside for taxes. I have driven for Uber, for example, and I put 25% of those earnings aside for tax time. Should I not need it all of it for taxes due to writing off expenses, then I consider what is left to be a bonus after filing taxes. Any suggestions for percentages to sock away for vacation rentals?

Thanks!

[Lisa Graesser]

Check the State website for in which the vacation rental is located. Search vacation rental tax or Sales and Use tax. In Florida for example, if you rent your house to someone  for less than 6 mo. then you have to pay a sales and use tax. You have to register with the State and pay your sales and use taxes monthly based on the rent  you received the month before. The tax is paid to me by the renter and I pass it along to the State.