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.
5 Real Estate Investment Tips
5 Real Estate Investment Tips There are a lot of options for investing. And one of the most popular choices amongst many high net worth individuals and family offices is real estate. Despite current interest rates being historically low, the real estate market, like all investments, carries some risk. It also experiences ups and downs.…
Rob Riggle on American Dreams
In this episode of the American Dream Show, host Alan Olsen sits down with actor and comedian Rob Riggle to discuss his journey from the Marine Corps to the world of comedy and acting. Riggle shares his background growing up in Kansas City and his experience serving in the Marine Corps, including his passion for…
Why Are The Wealthy & Family Offices Investing in Private Companies?
Why Are The Wealthy & Family Offices Investing in Private Companies? Well, it’s true that many private companies would gladly accept significant investment from a venture capitalist. However, there is a new trend emerging among wealthy investors that goes against the norm. Increasingly, private companies are turning to private investors and family office wealth to…
How to Lead in the Age of Agile During a Pandemic
How to Lead in the Age of Agile During a Pandemic Have you heard of agile? It’s often a buzzword in the workplace. Agile started as a philosophy related to software development. But in the past few years, it has morphed into an entire work philosophy. It’s generally viewed as the ability to create and…