Cool Us Tax Rules For Vacation Homes References. Your property is considered a business if you use your vacation home for 14 days or fewer in a year, or less than 10 percent of the days it’s rented. A residence is a vacationhome if the owner used it more than 14.

Your property is considered a business if you use your vacation home for 14 days or fewer in a year, or less than 10 percent of the days it’s rented. Here are a few more tax rules for vacation rental property that might save you in the long run: 1) when the personal use of the vacation home exceeds the greater of 14 days or 10% of the days it is actually rented all the expenses are only deductible to the extent of rental income.