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The Tax-Free Way to Rent Out Your Home
One of the best freebies in the tax code has gotten better—for people who don’t abuse it. The shift springs from a recent Tax Court decision. The freebie is tax code section 280A(g), often called the Masters’ exemption, which is worth reviewing on its own. It’s a longstanding provision allowing people to rent out their homes for two weeks or less and pocket the rental income free of federal taxes.