Client lives in a college town. He rented out his home for 3 football weekends last year - so only rented for about 10 days. Normally, rental of personal home for less than 15 days would mean he does not need to claim any of this income... but here is the twist: the home he lives in is owned by his parents. He does not pay rent to his parents, but he received all the money for renting out the house last year (not sure parents even knew about this). Does this still qualify to be excluded from income; or since he is not the home owner, does he need to claim the income somewhere (Sch E or Line 21)?
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Topic 415 - Renting Residential and Vacation Property
"There is a special rule if you use a dwelling unit as a personal residence and rent it for fewer than 15 days. In this case, do not report any of the rental income and do not deduct any expenses as rental expenses."
This does not say anything about owning the property.
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