Updated October 24, 2026. Quick answer: Tax Topic 415 is the IRS page on renting a dwelling unit such as a house or apartment. It says you may deduct certain expenses against the rental income, but limits apply if you also use the unit as a residence. If you use it as a residence and rent it for fewer than 15 days, the topic says not to report the rental income.
Quick reference
| Item | What the IRS topic says |
|---|---|
| Expenses that reduce rental income | “These expenses, which may include mortgage interest, real estate taxes, casualty losses, maintenance, utilities, insurance, and depreciation, will reduce the amount of rental income that’s subject to tax.” |
| Forms | “on Schedule E (Form 1040), Supplemental Income and Loss.” |
| Used as a residence | “14 days, or” |
| Second test | “10% of the total days you rent it to others at a fair rental price.” |
| Residence rented fewer than 15 days | “don’t report any of the rental income and don’t deduct any expenses as rental expenses.” |
Rental income and the usual expenses
The topic begins with the basic rule. It says “If you receive rental income for the use of a dwelling unit, such as a house or an apartment, you may deduct certain expenses.” On where to report it, it says “You’ll generally report such income and expenses on Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors”.
On losses it says “Your rental losses, however, generally will be limited by the “at-risk” rules and/or the passive activity loss rules.” Our page on Schedule E lines 23a to 26 shows the totals section of the form.
When personal use turns a rental into a residence
The topic gives a test. It says “You’re considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for a number of days that’s more than the greater of:” Those two numbers are “14 days, or” and “10% of the total days you rent it to others at a fair rental price.”
It also says what counts as a day of personal use. One example is “Anyone at less than fair rental price”. Another is “A member of your family or of a family of any other person who has an interest in it, unless the family member uses it as their main home and pays a fair rental price”.
The topic gives an example with two homes: “It’s possible that you’ll use more than one dwelling unit as a residence during the year.”
Short rentals and splitting expenses
The minimal use rule reads “There’s a special rule if you use a dwelling unit as a residence and rent it for fewer than 15 days.” The result is stated as “In this case, don’t report any of the rental income and don’t deduct any expenses as rental expenses.”
When a unit has both uses, the topic says “you generally must divide your total expenses between the rental use and the personal use based on the number of days used for each purpose.” It also says “However, you may be able to carry forward some of these rental expenses to the next year, subject to the gross rental income limitation for that year.”
The itemized deduction side is covered too: “If you itemize your deductions on Schedule A (Form 1040), Itemized Deductions, you may still be able to deduct your personal portion of mortgage interest, property taxes, and casualty losses from federally declared disasters on that schedule.” The topic closes with “If you have a rental income, you may be subject to the net investment income tax (NIIT).”
Where this comes from
This page describes the IRS page titled Topic no. 415, Renting residential and vacation property, as served on irs.gov on October 24, 2026. The IRS page shows that it was last reviewed or updated on 24 Sep 2026. The IRS can change a topic after we read it, and the IRS page controls. General information, not tax or legal advice.
Common mistakes
- Reading the 14 day figure as the only test. The topic gives two numbers: “14 days, or” and “10% of the total days you rent it to others at a fair rental price.”
- Assuming a family member’s stay is never personal use. The topic counts it unless “the family member uses it as their main home and pays a fair rental price”
- Reporting income from a short rental of a home you also live in. The topic says “There’s a special rule if you use a dwelling unit as a residence and rent it for fewer than 15 days. In this case, don’t report any of the rental income and don’t deduct any expenses as rental expenses.”
- Assuming the whole expense total is deductible against rent. The topic says to “divide your total expenses between the rental use and the personal use”
Related: IRS tax topics by number, Schedule E line 1 and fair rental days, Schedule E lines 23a to 26, Renting the vacation home to family, Converting your home to a rental, Form 8582 lines 4 to 9, and Form 8960.
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Answer againSources
- IRS, Topic no. 415, Renting residential and vacation property (irs.gov): https://www.irs.gov/taxtopics/tc415
- IRS, Tax topics index (irs.gov): https://www.irs.gov/taxtopics
Read from the IRS pages linked above on October 24, 2026. General information, not tax or legal advice. The IRS topic page and the instructions for your own form control, and your own facts decide the outcome.