If you’ve ever thought about renting out your home and wanted some tax-free cash, then read on...

Let’s say there’s a big event coming to your city — something like the July 4th celebrations in D.C., the New Orleans Jazz & Heritage Festival, Lollapalooza in Chicago, or maybe even next year’s Super Bowl in Northern California. Maybe you’re looking to get out of town anyway. Why not make your getaway a little sweeter by pocketing some tax-free income?

Here’s the deal:If you rent out your personal residence for 14 days or fewer during the year, the income you make is completely tax-free. That’s right — no taxes owed and you don’t even have to report it on your tax return, regardless of how much rent you charge.

It’s a simple, powerful strategy that many homeowners overlook.

And if you own a vacation home, you might’ve considered renting it out every now and then to help cover expenses. The same rule applies: as long as you rent it out for 14 days or less per year, and the home qualifies as a personal residence, that income is also tax-free.

To qualify, your personal use of the property must exceed the greater of:

• 14 days, or

• 10% of the total number of days the home is rented to others at fair market value.

So whether you're escaping the chaos of a local event or just want to turn your time away into some extra (non-taxable) cash, this could be a great move.

Hope this helps. Have questions? Just let me know — I’m happy to help.