Homeowner Guide
Smart income. Smart taxes.
Understanding your tax obligations is part of making a confident decision about renting your home. Here's what you need to know about festival rental income including a federal provision that could make your Sundance Film Festival earnings income tax-free.
The Key Provision
The 14-Day Rule: Section 280A(g)
Under Section 280A(g) of the Internal Revenue Code, if you rent your primary or secondary residence for 14 days or fewer in a calendar year, the rental income is generally excluded from your gross income entirely. You do not need to report it on your federal tax return.
This provision exists specifically because Congress recognized that homeowners who occasionally rent their homes for major events such as the Masters golf tournament in Augusta, the Super Bowl, or the Sundance Film Festival shouldn't endure a tax filing burden.
Because the Sundance Film Festival typically runs for approximately 10 days, many homeowners who rent for the duration of the festival fall comfortably within this threshold. For those homeowners, the rental income could be completely tax-free at the federal level.
The Simple Version
Rent for 14 days or fewer: income is generally not taxable at the federal level.
Rent for 15 days or more: rental income must be reported and is subject to federal income tax.
Beyond 14 Days
If You Rent for More Than 14 Days
If you choose to rent your home for 15 or more days in the year, the Section 280A(g) exclusion no longer applies. Your rental income becomes taxable and must be reported on your federal tax return, typically on Schedule E (Supplemental Income and Loss).
The good news: when rental income is reportable, you're generally also able to deduct expenses related to the rental such as mortgage interest, property taxes (proportional to rental days), utilities, cleaning costs, repairs, and depreciation. These deductions can significantly reduce your net taxable income.
The applicable federal income tax rate depends on your overall income bracket, which ranges from 10% to 37%. Many homeowners earning significant rental income find themselves in the 22%–24% range for that income, though your actual rate depends on your full financial picture. The calculator below lets you model any bracket.
Run the Numbers
Estimate Your Rental Income
Use this calculator to see how the 14-day rule affects your take-home income at different rental durations.
Rental Income Estimator
Crossover point: day 19 — where after-tax earnings exceed the 14-day tax-free amount
Gross Income
$20,000
10 nights × $2,000
Federal Income Tax
$0
Excluded under §280A(g)
Estimated Net Income
$20,000
After federal taxes
At 10 days, you qualify for the Section 280A(g) exemption. This income would generally not need to be reported on your federal tax return. At your current rate, the maximum tax-free income is $28,000 (14 days × $2,000).
Disclaimer: This calculator is for illustrative purposes only and is not financial or tax advice. It does not account for state income taxes, deductible expenses, or other factors that may affect your actual tax liability. Your effective rate on this income depends on your full tax picture. Please consult a qualified tax professional before making any decisions based on these estimates.
Colorado
A Note on State Taxes
Section 280A(g) is a federal provision. Colorado does not have an equivalent blanket exemption for short-term rental income. Even if your rental income is excluded at the federal level, you may have reporting obligations under Colorado state law if the income is significant.
Colorado's flat income tax rate is currently 4.4%. Your tax professional can help you understand how Colorado treats your specific rental situation, including whether any local Boulder county rules apply.
Year-End Support
How Marquee Makes Tax Time Simple
At the end of each calendar year, Marquee issues Form 1099-K to homeowners who received payments through our platform. This document summarizes your total rental income received through Marquee and is what you (or your accountant) will reference when preparing your tax return.
1099 Issued
You'll receive your tax document in early February, well ahead of the April filing deadline.
Clear Income Breakdown
Your 1099 shows exactly what was paid to you, making it straightforward to hand off to your accountant.
Rental Duration Tracked
Marquee maintains records of your rental dates, so you have documentation to support the 280A(g) exclusion if applicable.