I posted this in the airbnb subreddit, but I'm not sure that was the correct avenue, as I am not getting any clarification after reading the IRS tax rule.
Here's my basic scenario (I rent my apartment via Airbnb):
So, per the Masters Exception/14 day rule, as long as you: Rent the property for no more than 14 days during the year AND. Use the house yourself 14 days or more during the year or at least 10% of the total days you rent it to others, then you are not responsible for any tax.
Here's where my situation is different. From Jan-Jul 30th, I will have rented apartment A for a total of 14 days. At that point, I am moving to apartment B.
From what I see from this rule, it specifies THE property, which I read to be specific to apartment A, which is my primary residence currently.
If I went ahead and rented my new primary residence, apartment B for another 10 days from Aug-Dec, I would still meet the requirement, again, of residing for 14 days/10% of the rented time.
Would this mean that my 14 day essentially resets and is applied twice, since it seems to be property-specific, and I would also incur no tax liability on the second 10 days? (Ie. Is the 14 day PER property, as long as I fulfill the 14 day living/10% living on property of rented days).
I assume it doesn't apply. I'm not trying to do any shady stuff here. I'm simply asking for clarification on what I am reading the exemption as, from the law itself.
Thank you in advance!
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