Tax Tip #214

A rental property that produces a taxable loss is usually not deductible unless it produces rental income or passive income from other activities. If the rental property is turned into a short-term rental, then a taxable loss should be tax deductible. 

Qualifications: 

• The average period of customer use is seven days or less; or
• The average period of customer use is 30 days or less and significant personal services are provided by the property owner. 

Interested in converting your rental property into a short-term rental? Reach out to a team member for assistance.