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Airbnb: taxes?

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    #62
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Michael D Not Higgins wrote: »
    You may be right, it's just my reading of it. My response would be what if you rented two rooms that qualify under rent a room, each for 550/month. The total comes to 13200 which is above the tax free limit. Can you use a loophole to claim one is rent a room and the other is taxable?

    I don't think so- if you move away from the rent-a-room scenario in your PPR- you loose the rent-a-room allowance. You can't split the rental income under a number of different headings in the same property. If you had multiple properties- you could do rent-a-room in your PPR, Airbnb in a second dwelling etc to your heart's content- but not in the same dwelling.

    Its an unusual situation- and one that you would really need to get proper professional advice on (we are not allowed to offer such advice here).


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    #63
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    I just rang Revenue and they told me I will loose the rent-a-room relief on the whole rental income and my house will not be considered residential if I rent one the spare rooms with AirBnB.

    I have decided to leave the room unused rather than paying taxes on everything!

    But I don't think this is fare honestly :( I will try to follow up with AirBnB


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    #64
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    pasquale83 wrote: »
    I just rang Revenue and they told me I will loose the rent-a-room relief on the whole rental income and my house will not be considered residential if I rent one the spare rooms with AirBnB.

    I have decided to leave the room unused rather than paying taxes on everything!

    But I don't think this is fare honestly :( I will try to follow up with AirBnB

    Of course it's fair. The rent a room scheme allows you to earn a significant amount of money tax free. If you earn over the annual limit the entire sum is taxable. Simple as that. So regardless of how you split the income you would be paying tax on the full amount.


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    #65
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    athtrasna wrote: »
    Of course it's fair. The rent a room scheme allows you to earn a significant amount of money tax free. If you earn over the annual limit the entire sum is taxable. Simple as that. So regardless of how you split the income you would be paying tax on the full amount.

    Well IF I earn over the annual limit OK, but as far as I have understood also if I earn 1 euro with AirBnB I have to pay taxes on the whole amount.


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    #66
    loyatemu
    Registered Users Posts: 14,928 ✭✭✭✭loyatemu


    If Revenue regard AirBnB as commercial income, presumably you can offset some of the expenses of renting the room out?


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    #67
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    loyatemu wrote: »
    If Revenue regard AirBnB as commercial income, presumably you can offset some of the expenses of renting the room out?

    This is a good point. Didn't ask today but for sure I will.

    In the meanwhile, If someone as more details is welcome to share them with us! :)


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    #68
    Mrs OBumble
    Registered Users Posts: 25,942 ✭✭✭✭Mrs OBumble


    pasquale83 wrote: »
    I just rang Revenue and they told me I will loose the rent-a-room relief on the whole rental income and my house will not be considered residential if I rent one the spare rooms with AirBnB.

    I have decided to leave the room unused rather than paying taxes on everything!

    But I don't think this is fare honestly :( I will try to follow up with AirBnB

    Submit the question to them in writing, so you get a written reply back from them.

    Ask specifically how long a letting of the 2nd room needs to be to ensure that you do qualify for rent-a-room relief.


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    #69
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Mrs OBumble wrote: »
    Submit the question to them in writing, so you get a written reply back from them.

    Ask specifically how long a letting of the 2nd room needs to be to ensure that you do qualify for rent-a-room relief.

    Revenue *do not offer opinions*
    The OP needs professional tax advice
    While they may get clarification over the phone from Revenue- they won't get an opinion- the regime is subject to constant revision- and they are highly unlikely to put something in writing that may subsequently be deemed binding. It hasn't changed since my days there.


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    #70
    pasquale83
    Registered Users Posts: 477 ✭✭pasquale83


    The_Conductor wrote: »
    Revenue *do not offer opinions*
    The OP needs professional tax advice
    While they may get clarification over the phone from Revenue- they won't get an opinion- the regime is subject to constant revision- and they are highly unlikely to put something in writing that may subsequently be deemed binding. It hasn't changed since my days there.

    Does anyone have any update on this: http://www.irishtimes.com/business/personal-finance/airbnb-in-talks-with-government-on-tax-free-threshold-1.2461808


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    #71
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    pasquale83 wrote: »
    Does anyone have any update on this: http://www.irishtimes.com/business/personal-finance/airbnb-in-talks-with-government-on-tax-free-threshold-1.2461808

    AirBnB is short term let not for residential accommodation, which has been clarified by Revenue as requiring tax to be paid as per Schedule D of the TCA 1997.

    This was always kite flying by AirBnB to appease their customers on the tax due.


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    #72
    Newbie in the room
    Registered Users Posts: 14 ✭Newbie in the room


    Hi guys, hope you can be of some help here. I sublet a place I rented in college for the summer while I moved back home in 2018. I earned just under €5k from it. My question is how do I go about declaring this in tax. Would preferably like to do it online but am getting a little confused with how it's done.

    Any help would be much obliged.


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