If You’re Using Airbnb for Some Extra Cash Don’t Forget About Taxes
Have you heard about the latest craze in hospitality? It’s the idea of renting out your home for a night or two, or perhaps even slightly longer, to someone looking for a place to stay other than a hotel. The leader in the industry is Airbnb, which works much like Uber, the personal cab driver company. Airbnb matches renters with those looking for a place to stay via an app, whether it’s a spare room for a night or a luxurious vacation home for two weeks.
It’s a great way for space owners to bring in a little additional income, but it doesn’t come without a price. If you make money through Airbnb, just like with anything else, make sure you understand the taxes involved. That is not necessarily an easy process, either, because the tax codes for renting can get very complex.
First, you have to determine if your home is a residence or a rental. or a combination of both. If you end up using your home exclusively, or for a large majority of the time, as a rental then you will have to report all that income; but you can also use any expenses as a deduction. If you choose to exclude your rental income then you cannot deduct any of your expenses that are attributed to your rental activity.
The bottom line when renting out your home or even a small portion of it is that you need to have a good handle on the tax implications. There are a lot of possible outcomes, but make sure you know which one is best for you before you start welcoming vacationers and other strangers into your home to make a few extra bucks.
Art as an Investment?
Art as an Investment? “Beauty is truth, truth beauty”—that is all/Ye know on earth, and all ye need to know.” —John Keats, “Ode on a Grecian Urn” Well, yes, but many who collect works of art—whether Grecian urns or Ming vases, Rembrandts or Warhols—and many who share the growing interest in art as an investment have…
50 Tax Deductions You Should Remember
50 Tax Deductions You Should Remember 1. Accounting fees for tax preparation services and IRS audits 2. Alcoholism and drug abuse treatment 3. Amortization of premium on taxable bonds 4. Appraisal fees for charitable donations or casualty losses 5. Appreciation on property donated to a charity 6. Casualty or theft losses 7. Cellular telephones –…
Underpayment of Taxes – Personal Returns – How to Avoid Penalties – Dreaded “Spiky Income”
Underpayment of Taxes – Personal Returns – How to Avoid Penalties – Dreaded “Spiky Income” By Ron Cohen, CPA, MST Partner Greenstein, Rogoff, Olsen & Co., LLP One of the most frustrating issues taxpayers confront as they attempt to deal with their taxes is to determine the required amount and due dates for estimated tax…
Are You Ready for the 2014 Tax Year?
Are You Ready for the 2014 Tax Year? If you’re like most individuals or businesses then you’re probably breathing a sigh of relief as the 2013 tax year is finally in the rearview mirror, except for those who have filed for an extension, of course. Well, don’t get too comfortable; it’s time to start thinking…