Longer days and warmer weather often inspire people to get out, travel, tackle projects and make the most of the season. As you enjoy summer, consider briefly taking off your sunglasses to get a closer look at how some seasonal activities could help lower your tax bill. Here are six to examine.
1. Renting Out Your Home for Two Weeks or Less
Do you live in an area where an event — such as a golf tournament or music festival — is held? If so, consider departing during the event and renting your home to attendees. As long as you rent out your home for no more than two weeks total during the year, you don't have to report the rental income.
That means it's completely exempt from federal income tax. But you also can't deduct rental-based expenses, such as advertising or cleaning.
You might use the extra income to splurge on your own vacation while the event takes place — or you can spend it on upgrades or repairs to your home that you've been putting off.
2. Using — and Not Using — Your Vacation Property
Do you own a vacation home? If you rent out a second home (or your principal residence) for 15 days or more during the year, you'll have to report the income on your tax return. But you also may be entitled to deduct some or all of your rental expenses — such as utilities, repairs, insurance and depreciation. Exactly what you can deduct depends on whether the home is classified as a personal residence or rental property for tax purposes.
Your vacation home is classified as a personal residence if personal use during the year exceeds the greater of 1) 14 days, or 2) 10% of the days you rent out the home at fair market rates. Personal use generally means use by an owner, certain family members of an owner and any other party (family member or otherwise) who pays less than fair market rates.
When calculating personal use, disregard days of vacancy and days spent substantially on repairing and maintaining your property (not improving it). These generally aren't counted as personal-use days, even if family members use the property for recreational purposes on the same day.
Here's how the tax treatment varies:
Personal residence. You can deduct rental expenses only to the extent of your rental income. Any excess can be carried forward to offset rental income in future years. If you itemize deductions rather than claiming the standard deduction, you can also take an itemized deduction for the personal portion of both mortgage interest and property taxes, subject to the applicable limits. (For more on itemizing vs. claiming the standard deduction, see No. 6 below.)
Rental property. You can deduct rental expenses, including losses, subject to the real estate activity rules. Property tax attributable to the rental use of the home isn't subject to the limit on the itemized state and local tax (SALT) deduction. You can't deduct any interest that's attributable to your personal use of the home. However, if you itemize deductions, you can take the personal portion of property tax as an itemized deduction (subject to the SALT limit — see No. 3 below).
In some situations, it may be beneficial to reduce personal use of a vacation home so it will be classified as a rental property.
3. Hitting the Road or Water with an RV or Boat
Are you shopping for a recreational vehicle (RV) or boat for personal use this summer and beyond? If you itemize deductions, you can deduct state and local sales taxes paid during the year — including the potentially large sales tax amount on your RV or boat purchase — in lieu of deducting your state and local income taxes.
With the SALT deduction limit more than quadrupled for 2026 by last year's One Big Beautiful Bill Act (OBBBA), there may be a bigger likelihood that your total SALT expense won't exceed the limit — $40,400 ($20,200 for married taxpayers filing separately). However, when modified adjusted gross income (MAGI) exceeds the applicable threshold, the cap is reduced by 30% of the amount by which MAGI exceeds the threshold — but not below $10,000 ($5,000 for separate filers).
If instead of keeping track of all your actual expenses, you choose to deduct sales taxes based on the optional IRS table, you can still write off the actual sales tax for certain high-cost items — including RVs and boats — in addition to the table amount (subject to the overall SALT limit and other rules).
Also be aware that an RV or boat can qualify as a personal residence if it has sleeping, cooking and toilet facilities. If this is the case and you itemize deductions, you may also be able to deduct mortgage interest on the RV or boat, as well as state and local property tax on it, if applicable, within the usual limits.
4. Combining a Business Trip with a Vacation
Do you have to go on any business trips this summer? If you're the owner of the business or self-employed and the primary purpose of a trip is business-related, you potentially can write off a portion of your travel expenses — even if you do some vacationing while you're away.
For instance, if you fly cross-country and spend the workweek in meetings and the weekend sightseeing, the entire cost of your airfare plus costs of lodging, local transportation and meals during the workweek generally will be deductible within the usual tax law limits (such as the 50% limit on the meal deduction). But you can't write off expenses for days not spent on business activities.
If your family accompanies you on the business trip, their expenses aren't deductible (unless a family member is also an employee of your business and has a legitimate business reason to be on the trip). But you can write off what it would have cost you to travel alone. For instance, if you pay $250 per night for a hotel room and a single room costs $200, you can deduct $200 per night — but only for the period you're doing business. If on Saturday and Sunday you're primarily relaxing and enjoying vacation activities with your family, you can't deduct any of the hotel expenses for those nights.
5. Sending the Kids to Day Camp
Are any of your children going to day camp this summer? Assuming you work full-time and certain other requirements are met, the cost qualifies for the dependent care credit.
For middle-income-and-higher taxpayers, the credit generally equals 20% of the first $3,000 of qualified expenses for one child or 20% of up to $6,000 of such expenses for two or more children. That's a maximum credit of $600 for one child or $1,200 for two or more children. For 2026, the OBBBA increased the credit percentage from 35% to 50% for lower-income taxpayers, and certain middle-income taxpayers may be eligible for a percentage between 20% and 35%.
This tax break is available only for day camps, including specialty camps for athletics or the arts. An overnight camp doesn't qualify.
6. Doing a Big Cleanup
Are you planning to spend some downtime this summer cleaning out the garage, attic or basement? You'll likely find some household goods — such as used clothing or furniture — that you don't need or want anymore. Instead of discarding these items, consider donating them to charity. Assuming they're still in good condition, you'll be eligible for a charitable deduction based on their current fair market value.
However, you can deduct donations of property only if you itemize deductions. If you expect to claim the standard deduction in 2026 (rather than itemizing), you won't get any tax break from the donation. Itemizing saves tax only if your total itemized deductions for the year are higher than your standard deduction. With today's high standard deductions, many taxpayers' itemized deductions don't exceed that threshold.
Some charitably inclined taxpayers may benefit from a "bunching" strategy, in which they bunch their charitable donations into alternating years and itemize deductions in those years. If it makes sense for you to claim the standard deduction for 2026 and bunch donations into 2027, consider setting aside the items you'd like to donate and dropping them off at your chosen charity next year.
But also be aware that, beginning in 2026, the OBBBA imposed a 0.5% floor on the charitable deduction for itemizers. This generally means that only charitable donations in excess of 0.5% of your adjusted gross income (AGI) will be deductible if you itemize deductions. So, if your AGI is $100,000, your first $500 of charitable donations for the year won't be deductible.
Before Summer Slips Away
A little tax planning now may pay off when it's time to file your return next year. If you have questions about any of these strategies or would like to discuss your situation, contact your tax advisor.