eBook Calculator Tax Drill-Rental of Residence Complete the following statements regarding the tax treatment of vacation home rentals. a. If the residence is rented for fewer than 15 days in a year, it is treated as a personal residence The rent income is excluded from gross income, and mortgage interest and real estate taxes are allowed as itemized deductions b. If the residence is rented for 15 days or more in a year and is not used for personal purposes for more than the greater of (1) percent of the total days rented, the residence is treated as rental property.The ome and result in a rental loss. days or (2) deduction of the expenses allocated to rental days can exceed rent inc r the residence is rented for 15 days or more in a year and is used for personal purposes for more than the greater of 1) c percent of the total days rented, It is treated as a personal/rental use residence V. days or (2) Expenses are allowed only to the extent of rent income. Feedback v Check My Work Restrictions on the deductions allowed for part-year rentals of personal vacation homes were written into the law to prevent taxpay deducting essentially personal expenses as rental losses. Many taxpayers who own vacation homes use the property for personal u a portion of the year and rent the property at other times