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.
Brian Smedley – Chief Economist at Guggenheim Investments
The Economic Forecaster – Brian Smedley Droves of anxious people take to the arid streets of Tatooine. The desert planet recently experienced a decline in GDP and now with inflation on the rise, rash financial decisions made by the population were a real danger. As the crowd continues onward, it is confronted by a stranger.…
10 Steps for TikTok Marketing
With over 500 million active users, TikTok is a social media powerhouse that you can’t afford to ignore. Here are 10 steps for marketing your business on TikTok. 1. Research your audience: Who are you trying to reach with your TikTok marketing? What are their demographics? What type of content do they consume and engage…
Business Valuation Terms Explained “DLOCK” Vs “MID”
The Discount for Lack of Control (DLOC) vs. The Minority Interest Discount (MID) The Business Valuation Glossary provides these definitions of two similar terms: Discount for Lack of Control – an amount or percentage deducted from the pro rata share of value of 100% of an equity interest in a business to reflect the absence…
The “My Path” Book is now available on Amazon!
Dear American Dreams Show Subscribers, “My Path” is now available on Amazon! We are excited and proud to announce that after a decade of interviewing some of the most interesting and successful business and thought leaders in the world, the American Dreams Show’s Host, Alan Olsen, has published the first book based on a…