5 tax tips anyone can use when renting out a home through Airbnb, Flipkey, and other vacation rental services. You won't want to miss tip number four!
Hello, I’m Victoria from TurboTax with some tax tips if you’re renting out your home through services like Airbnb, FlipKey, and others.
Tip number one: You can rent your home for fourteen days every year without declaring that income on your taxes, but you cannot claim any rental expenses as deductions.
Tip number two: If you rent for more than fourteen days a year, you must declare that income.
On the plus side, you are then allowed to claim rental expenses as a reduction in rental income.
Tip three: If you rent for more than fourteen days, then you must decide whether to report it on Schedule C, used when you provide services like breakfast or cleaning, or Schedule E, which is for passive rental income. Some experts suggest that Schedule C is the way to go because you can deduct your business expenses.
Tip four: Deduct the fees taken off the top of your rental income by Airbnb or another company.
This is the part of the rental fee you never receive, but it is listed on the rental income you get in the 1099 filed with the IRS.
Tip five: Be ready to pay occupancy taxes. These may also be called hotel or transient taxes.
For more tips and information to help you get your taxes done smarter, visit TurboTax.com.