Tax tactic: 14-day rental of primary home (Section 280A(g)) resurfaces
Key Questions
What is the Section 280A(g) tax tactic for primary homes?
Under §280A(g), renting your primary home for up to 14 days is tax-free on rental income. This resurfaces as a simple way to generate income without tax liability.
How are KDP royalties taxed?
KDP royalties are reported on Schedule C, subject to self-employment (SE) tax, with deductions for business expenses. Quarterly estimated taxes may apply for authors.
What deductions apply to short-term rentals (STR)?
STR owners can claim material participation for deductions, cost segregation, and bonus depreciation. LLC structures enhance tax efficiency.
How do tax-advantaged accounts benefit SCHD investments?
Using TFSA or RRSP for SCHD avoids common tax mistakes that erode income. FHBFHX offers additional tax edges for dividend growers.
What audit risks come with rental tax strategies?
Strategies like 14-day rentals use FMV for valuations, but audits scrutinize material participation and deductions. Proper documentation is essential.
§280A(g) 14-day tax-free; KDP royalties Schedule C/SE tax/deductions/LLC/quarterly; STR material participation/cost seg/bonus dep; SCHD TFSA/RRSP/FHBFHX tax edges; FMV vs audits.