Definition
Days on which a property owner or their family personally occupies a vacation home or mixed-use property, counted toward determining whether the property qualifies as rental property or vacation home for tax purposes.
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Personal use days include any day the owner or family member occupies the property, regardless of whether they actually use it for leisure (even sleeping there counts). Days renting to family members at fair market rent don't count as personal use. Days spent maintaining or preparing the property might count as personal use (IRS is unclear). The 14-day or 10% test depends on these personal use days: if personal use is 14 days or less AND less than 10% of rental days, it's a rental property. Otherwise, it's a vacation home with different deduction rules. Careful tracking is essential because misclassifying personal use can trigger audits. Some taxpayers undercount personal use to claim rental property status, attracting IRS scrutiny. Documentation through calendars, guest logs, and credit card statements strengthens the record. Family members' use counts as personal use even if the owner isn't present.
Pro Tip
Keep a detailed calendar documenting personal use days. Include all occupants and dates. This documentation is essential if the IRS questions your property classification.
Example
A vacation home is rented 200 days yearly. The owner uses it 10 days personally and family uses it 5 days. Total personal use is 15 days, exceeding the 14-day threshold, so it's classified as a vacation home.