How to Get Vacation Rent Tax-Free

$30,000! That’s what several home-owners who live relatively close to Chambers Bay Golf Course are getting as the world prepares for the US Open Championship.

The event can send the message that some rental tax breaks work especially well for retirees. The relevant tax break: anyone, not just retirees, can rent a home (primary residence) for up to 14 days every year without owing income tax. Retirees aren’t tethered to jobs, so they have more flexibility to leave their home to high-paying renters on the right dates. If you’re still working, pull a “John Daly” and sleep in the car outside your employer. Kidding, not my recommendation. But you get the point.

Ground Rules

You can rent your primary residence or your second home. But you have to clear some hurdles to qualify for tax-free income. Most important, you must rent the home for no more than 14 days during the year.

If you go over by even one day, tax-free treatment will vanish. If you have a vacation home, the home is treated as a residence in any tax year in which the owner’s use of the unit for personal purposes exceeds the longer of (1) 14 days or (2) 10% of the period of rental use. So watch out.

For example: Mr. and Mrs. Shank use their home, overlooking the Puget Sound, twenty-nine days a year. The home usually rents for 300 days a year. Therefore, the house will be treated as rental property for tax purposes, and deductions attributable to rental use may be allowed. Phase-outs, taxes, passive/active participation, and AGI all factor in at that point.

The IRS says you must use the dwelling unit as a home. Again, you’ll pass this test if the home is used “personally” for the longer of 15 days or ten percent of the rental period to others in a calendar year. It doesn’t matter how much income you have or how much you collect. Abide by these rules and you’re home tax-free.

In some cases, these short-term rentals can bring in thousands of dollars and there are plenty of homes up for grabs this June. There’s no Social Security or Medicare tax due on rental income. You don’t even have to report the income from these short-term rentals.
So the cash flow won’t show up on your adjusted gross income (AGI). Holding down AGI offers multiple tax advantages. For retirees, it can mean less tax on Social Security benefits.

Even better, regular residence tax benefits are not affected. So you can continue to deduct mortgage interest and property tax payments for the home involved.

Whether you advertise yourself or use an agent, check into any special requirements for short term rentals. Some areas fine homeowners who rent their homes without a permit. And your home insurer might require special coverage.
Get rental payment upfront, along with an adequate security deposit. Damages do happen and will eat into the amount received as rent, quickly.

Tickets for the US Open have pretty much sold out already, and so the demand is there for homeowners who would like to take advantage of this tax-free income. Let us know if there are concerns or questions pertaining to the assets you own, and how we might suggest ways to make them work better for you.

Blake Parrish
Senior VP, Portfolio Manager
Phone: (503) 619-7237
E-mail: blake@bpfinancialassoc.com

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PNW PGA Senior Players’ Championship – Final Results

 

Host Pro John Thornes and Champion Mark Gardner

Host Professional John Thorsnes and Champion Mark Gardner

Walla Walla, WA – Wine Valley Golf Club, 6,525 Yards, Par 72

Field – 51 teams of one Pacific Northwest PGA Professionals and one amateur.

PGA Professional Mark Gardner of The Creek at Qualchan won the PNW Senior Players’ Championship after firing rounds of 64-71-135 to win by 2 strokes over PGA Professional Mike Gove of Inglewood GC.

PGA Professional Mark Keating of Pumpkin Ridge GC took third place.  Ed Jonson of Wing Point G&CC took low amateur honors after finishing in a tie for fourth place with PGA Professional Tom Sovay of GC at Redmond Ridge and PGA Professional Billy Bomar of Prairie Falls GC.

Winning the team Four-Ball competition is the team of PGA Professional Mark Gardner and his amateur John Lefriec, PGA Professional Billy Bomar of Prairie Falls GC and amateur Mike Kerns and PGA Professional Mark Keating of and amateur Mark Bowler.

Congratulations to PGA Professional Lon Hinkle of Eagle Bend GC who make a rare double eagle on hole #7, a par 5 on Tuesday.  He dunked a shot from 252 yards with a 20 degree hybrid.

Congratulations also to amateur Keith Crimp of Ellensburg G&CC for making a hole-in-one on the 11th hole.  He hit an 8 iron from 155 yards.

ClubGloveThe Senior Players’ Championship welcomed PGA Professional Ken Allen and Club Glove to the event this year as a sponsor.  Ken was on site at Wine Valley to meet each participant and hand out a tee gift.

CLICK HERE to view the Senior Players’ Championship final results.

 

wine valley logoWINE VALLEY GC – Wine Valley Golf Club, which opened in April of 2009, has been rated 5th on Golfweek’s Best New Courses.  To produce Golfweek’s Best New Courses list, a nationwide team of more than 475 evaluators rated the layouts on the basis of 10 criteria, including routing, conditioning, variety and memorability of holes. The result is an average of scores, which then dictates a course’s overall ranking.

This stunning Dan Hixson design unfolds on a grand scale, playing over rolling hills in the shadow of the Blue Mountains.  Wine Valley GC has broad fairways, dramatic bunkers, and bold, undulating putting surfaces.

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Muckleshoot Casino Washington Open Invitational – Sign up today!

2015-WAOpen-banner-32015-WAOpen-sponsor-row

  • Meridian Valley CC – 6,673 Yards, Par 72
  • Field size – 136 professionals, 32 amateurs.
  • Competition -54 hole individual stroke play. NO CUT!
  • Muckleshoot Casino Washington Open Pro-Am benefiting Folds of Honor:
    Saturday-Sunday, May 16-17
  • 89th Muckleshoot Casino Washington Open Invitational:
    Monday-Wednesday, May 18-20
  • CLICK HERE to sign up online for the Washington Open Invitational Professional Entry.
  • CLICK HERE to sign up online for the Washington Open Invitational Amateur Entry.
  • CLICK HERE to download the Washington Open Invitational Professional PDF Entry.
  • CLICK HERE to download the Washington Open Invitational Amateur PDF Entry.

Play for Honor

The Washington Open Invitational begins over the weekend with the Muckleshoot Casino WA Open Pro-Am benefiting Folds of Honor on Saturday, May 16 and Sunday, May 17. Your team entry fee raises funds for Folds of Honor, which provides scholarships for the children and spouses of those killed or disabled in service to the United States Military. For more information or to sign up your team today, please visit https://www.foldsofhonor.org/

Play with the Best

The Muckleshoot Casino Washington Open Invitational will be held Monday-Wednesday, May 18-20. This event draws 168 of the best professional and amateur players in the Northwest. There is no cut! Last year’s champion, PGA Professional John Cassidy of Alderbrook Golf & Yacht Club, is expected to return to defend this title. Watch 2014 interview with John Cassidy.

Be a Part of History

The Washington Open Invitational dates back to 1922. In that year, young Al Espinosa captured the crown at Yakima CC. Some big names have won this event over the years including the Zimmerman brothers, Al and Emery, along with Chuck Congdon, Al Mengert, Senior Tour Player Rick Acton and PGA Tour Player Fred Couples.

Chuck Congdon holds the record for the most wins (39, 47, 50, 52, and 62) while Al Mengert holds the record for the most consecutive wins (63, 64, and 65). The current tournament record is held by PGA Professional Tim Feenstra of Broadmoor GC (2011) and PGA Member Jeff Gove (2012).

Meridian Valley Country Club

Meridian Valley CC is championship golf at its most beautiful. This exceptional 18-hole layout was designed by Ted Robinson, one of the nation’s leading golf course architects, who chose the site based on the stunning views the surrounding area provided. MVCC opened in 1967 with 9 holes ready for play. The second nine holes and clubhouse opened in 1968. Over the years, MVCC has grown into one of the Northwest’s most respected golf courses. It has hosted the 1972, 1976, 2002, 2004, 2005, and 2009, 2013 and 2014 Washington Open Invitational, as well as the SAFECO Classic from 1982 until 1999.

Muckleshoot Casino

muckleshoot casinoMuckleshoot Casino offers over 3,100 video gaming machines with the greatest variety of game themes under one roof. It also offers a variety of table games including $1 Blackjack and 25¢ Roulette, as well as the largest non-smoking Poker Room in the State! The Casino also has 8 tasty restaurant choices to satisfy your cravings, 6 different bars, and a variety of special guest entertainers at no cost. If that isn’t enough, make sure you hit up the HUGE BINGO HALL located just across from the Casino.

 

Professionals, please promote this event to the low handicap amateurs at your club!

 

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In Memoriam Taylor Ferris – 4/18/1985 – 4/17/2015

Taylor Ferris

Taylor Ferris

Former Section Apprentice Taylor Ferris passed away on Friday, April 17 as a result of a auto accident in Tacoma, WA.  Taylor spent his career at Allenmore, Fircrest and Meadow Park.

Services will be held Monday, April 27 at 4 pm at Life Center in Tacoma.

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PNW PGA and PNGA to Induct Five at Joint Hall of Fame Ceremony

2015_HoF_allFor the third time in Northwest golf history, the Pacific Northwest Golf Association (PNGA) and the Pacific Northwest Section PGA (PNWPGA) will conduct a joint Hall of Fame ceremony to honor inductees from each organization. This combined Pacific Northwest Golf Hall of Fame Induction Ceremony will be held at Inglewood Golf Club on April 24.

Being inducted this year for the PNGA are Hilda (McAuslan) Beck of Seattle, Wash. (who is being inducted posthumously); Tom Brandes of Bellevue, Wash.; and Chris Maletis of Portland, Ore. The PNWPGA will be inducting Pat Huffer of Crooked River Ranch, Ore. and Steve Prugh of Spokane, Wash.

Read more at thepnga.org

For information on attending the Hall of Fame Induction Ceremony on April 24, contact the PNGA office at 206-526-1238.

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Alta Lake GC Reopens Following Wildfire

View the article on King 5 news.

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