Renting Your Home On Airbnb? Take A Look At Tax Consequences
By Staff Writer
There was a time when owning a rental property was just the domain of well-to-do. But with passing time and hotel room rates skyrocketing, many travellers are now focusing on taking a night stay in a room that is for rent from a house instead of taking chances with $200 for a night at the La Quinta.
Trying to cure this dissimilarity between buyer interest and reasonable supply, Airbnb was launched in 2008. The app connects anybody with space to offer an extra room to an extreme super home, with the legion of travellers searching for budget-friendly night's rest, as reported by Forbes.
You can lease all or just a part of your home or apartment for up to 14 days each year and all the rental wage you get is totally tax-free, regardless of the amount you earn. In fact, you don't even need to report the earned salary to the IRS, according to an article from Nolo.
Your rental income is tax-free if you rent your home for 14 days or less a year and the home is used personally for more than 14 days or more than 10% of total days it's rented to others at a fair rental price.
If you rent your main residential apartment for more than 14 days a year and live in it for 15 days or more, you won't qualify for tax-free treatment as described above.
You are allowed to deduct 100% of your rental expenses including fees or commissions you paid to the rental agency, credit checks, advertising, cleaning costs etc..
You may also a deduct a portion of your general expenses to own and operate your entire house, such as real estate taxes, mortgage interest, gardening, repairs, insurance and several other home maintenance expenses.
In other news, American man Zac Stone's nerve-wracking record of his dad's passing at a rented cottage in Texas has risen many questions, as reported by ABC.
Mr. Stone's father died after tumbling from a rope swing and hitting his head while staying at the property they found on popular online home sharing stage known as Airbnb.
When my father decided to give it a try on Thanksgiving morning, the storage compartment, it was attached to softened up half and fell upon his head, instantly ending most of his brain activity.
He claimed, Airbnb sent a thoughtful note three days after his father's death to his family, offering condolences and the company's full support to the victim family.