Posted by Dave T on May 24, 2000 at 23:03:07:
If by vacation rental property you mean short-term rental property (such as a resort area condo) then you should be aware of the IRS treatment of this type of property.
Generally, if the AVERAGE length of occupancy is less than seven days, the property is NOT an investment property. Instead it is business property in the same class as a hotel or motel. As business property, your income and expenses are reported on Schedule C unless you use a C Corp to purchase and operate the property. Self employment taxes may also come into play.
If your question refers to vacation property where the average length of stay is longer than seven days per tenant, then you have an investment property.
Do you have a specific question to ask??