Taxpayers who use a vacation home for both personal and rental use generally must allocate expenses associated with the home to the personal use and to the rental use.

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According to IRS rules, taxpayers must allocate expenses associated with a vacation home between personal and rental use based on the number of days the home is used for each purpose. This allocation affects the amount of rental income that is subject to tax and the amount of expenses that can be deducted as rental expenses.

Taxpayers Who Use a Vacation Home for Both Personal and Rental