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).

RELATED TERMS
  1. Residential Rental Property

    A type of property that derives more than 80% of its revenue ...
  2. Income Property Mortgage

    A loan given to an investor to purchase a residential or commercial ...
  3. Form 4797

    A tax form distributed by the Internal Revenue Service (IRS) ...
  4. IRS Publication 544

    A document published by the Internal Revenue Service (IRS) that ...
  5. Rent Expense

    The cost incurred by a business to utilize property. Business ...
  6. Earning Assets

    An income-producing investment that is owned by a business, institution ...
Related Articles
  1. Taxes

    Getting U.S. Tax Deductions On Foreign Real Estate

    If your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.
  2. Investing

    Rent Revenue: A Growing Income Source for U.S. Households

    Never before has rental revenue represented such a large share of income gained by American households.
  3. Investing

    Tax Breaks For Second-Home Owners

    The tax rules on a second home vary, depending on how the property is used.
  4. Taxes

    Tax Breaks for Second-Home Owners

    Owning a second home is a great investment for a variety of reasons, but you need to know the tax implications of multi-home ownership.
  5. Retirement

    Generate Income For Retirement with Real Estate

    Learn whether rental income is compatible with your lifestyle, how to identify suitable properties, common pitfalls to avoid and how to secure financing.
  6. Financial Advisor

    How to Reduce Real Estate Investment Taxes

    Real estate tax law is not the same for rental properties as it is for residences. These tips can help you pay less in taxes.
  7. Managing Wealth

    The Pros And Cons Of Owning Rental Property

    Owning rental property can be a rewarding and profitable experience, but it comes with some real risks.
  8. Taxes

    How To Prevent A Tax Hit When Selling A Rental Property

    Rental property ownership has its benefits but when selling you can face a big tax hit. Thankfully there are ways to reduce your capital gains exposure.
  9. Investing

    Tips For The Prospective Landlord

    Investing in rental property can generate serious income, but there's more to it than collecting rent.
  10. Investing

    Is It Worth Buying A Second Home To Rent?

    Mortgage interest rates are low, but consider these dos and don'ts before making the leap into rental property ownership.
RELATED FAQS
  1. What do real estate investors look for in a property?

    Profit from real estate investments by either flipping homes or becoming a landlord. Learn best practices for a successful ... Read Answer >>
  2. An appraiser forms the following estimates for a rental property ...

    Free info on financial certification exams including study guides, exam questions, and much more! Read Answer >>
Hot Definitions
  1. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  2. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  3. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  4. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  5. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  6. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
Trading Center