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.
These Tax Breaks Are a Big Boost to the Wealthy
Even though the new presidential administration has already made several tax cut promises that would greatly benefit the wealthy, the fact is, high net worth individuals already benefit from several tax breaks that favor the rich. In fact, there are numerous ways that the wealthy can, and are already saving on their tax bill.…
Huge Decisions Loom for Lawmakers on Obamacare Taxes
One of the biggest calling cards of the Republican Party for the last several years, including President Donald Trump, has been to repeal the Affordable Care Act, also known as Obamacare. Although Obamacare has faced much opposition throughout its existence, recent polls suggest that most Americans don’t want it repealed, especially if there is…
Taxes: DIY or Hire a Professional?
Are you struggling with that ever-so-common question at this time of year: When will the sun come out again so I can play golf? Not that question. This one: Should I do my taxes myself or hire a professional? This is a very important question because the consequences of your choice can be significant.…
How to Avoid Capital Gains Taxes
For many of the nation’s high net worth individuals, much of their wealth comes from capital gains. Capital gains are better than income because they are taxed at a much lower percentage than other income. While capital gains taxes could be going down under the Trump administration, it still pays to know every trick…