Wring Tax Cash From Your Vacation Home

Even better, you can still can deduct your mortgage interest and real-estate taxes on "Schedule A" -- Itemized Deductions, as if you never rented out your home.

Just don't go thinking you're a landlord now. If you rent your home out for 14 days or less, you're not and you therefore cannot deduct any rental expenses.

This tax rule is nothing new. You can also rent out your principal residence for up to 14 days and pocket the money too. So if you're going on vacation anytime soon, consider renting out your home and getting your vacation paid for.

But I Want to Be a Landlord!

If you instead decide to rent out your fabulous little summer place for more than 14 days, then feel free to call yourself a landlord.

And introduce yourself to "Schedule E" -- Supplemental Income and Loss, because you'll need to report the income you receive from rentals that exceed 14 days. While you'll now owe tax on that money, you'll also be able to deduct some corresponding rental expenses.

The rules for deducting rental expenses are not entirely straightforward -- no surprise. First, you'll need to quantify the time you rent the house vs. the time you live there.

Then decide which camp you fall into:

• Do you use the place as a vacation home and rent it on occasion?
• Or do you rent it out mostly, and sporadically use it for personal use?