IRS Publication 527 - Residential Rental Property (Including Rental of Vacation Homes)


DEFINITION of 'IRS Publication 527 - Residential Rental Property (Including Rental of Vacation Homes)'

A document published by the Internal Revenue Service (IRS) that provides tax information for individuals who own residential properties that are rented out for income, either part of the year or all year. Typically, all income earned from rental properties is reported to the IRS, though the type of rental activity will alter which sections of the tax form that income is reported. IRS Publication 527 outlines how to account for property depreciation, what types of deductions can be made on rental income as well as what to do if only part of a property is rented.

BREAKING DOWN 'IRS Publication 527 - Residential Rental Property (Including Rental of Vacation Homes)'

Because taxpayers may only rent one piece of a property or might live in that rented property for part of a year, such as with a vacation home, taxpayers should pay close attention to how rental income is treated for their situation by the IRS.

Taxpayers who sell rental property should refer to IRS Publication 544 (Sales and other Disposition of Assets) or IRS Publication 523 (Selling Your Home).

  1. Non-Owner Occupied

    A classification used in mortgage origination, risk-based pricing ...
  2. Principal Residence

    The primary location that a person inhabits. It doesn't matter ...
  3. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  4. Vacation Home

    A dwelling other than the owner's primary residence that is used ...
  5. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
  6. Domicile

    One's primary residence for tax purposes. A domicile is established ...
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