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.

Posted in ,
From Combat Boots to Investor Suits with Jason Lehtinen, Managing Director at Collaborative Capital

From Combat Boots to Investor Suits with Jason Lehtinen, Managing Director at Collaborative Capital

Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Jason Lehtinen Jason, welcome to today’s show.   Jason Lehtinen Thank you Alan, its a pleasure to be here.   Alan Olsen So Jason, you have a unique background and I know in the in your past you’ve…

The Art of Building Authority through Books with Anna David, Author & Founder of Legacy Launch Pad Publishing

The Art of Building Authority through Books with Anna David, Author & Founder of Legacy Launch Pad Publishing

Transcript: Alan Olsen I’m Alan Olsen and welcome to American Dreams. My guest today is Anna David. Anna, welcome to today’s show. Anna David Thank you so much for having me, Alan. Alan Olsen So Anna you came is a recommendation of Joe Polish. And I think both of us have that common connection. And…

The Power of Emotional Intelligence in Negotiation with Former FBI Lead International Kidnapping Negotiator Chris Voss

The Power of Emotional Intelligence in Negotiation with Former FBI Lead International Kidnapping Negotiator Chris Voss

Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Chris Voss, Chris welcome to today’s show. Chris Voss Alan Thank you very much happy to be here. Alan Olsen Chris You have an amazing background and you know for the listeners can you walk us through your…

Treating The Pain Behind Addiction with Joe Polish, Founder of Genius Recovery

Treating The Pain Behind Addiction with Joe Polish, Founder of Genius Recovery

Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Joe Polish. He Joe’s done a lot of things today we’re going to talk about his book, The Miracle Morning for addiction recovery. And, Joe, welcome to today’s show. Joe Polish Thank you, Alan. So good to be…