airbnb tax question

Tusky

Hey folks,

Looking for some advice.

In 2016 myself and two housemates rented out our rented accommodation on airbnb for 3 nights, earning about €1000. We never listed it again. The airbnb account was made in my name and the lease on the house was in my name. At the time we didn't realise that airbnb income was taxed. The €1000 was paid into my account and I then transferred €350 to each housemate (I have a bank statement to show this).

Fast forward to this week - I just received a letter from Revenue saying airbnb said I had taxable income from the site.

1/ Do I have to declare the full amount (€1000) or do I only need to declare the portion I received - €350?

2/ What can I write off - cost of cleaner? Rent for those 3 days?

All help appreciated.

Pkiernan

Tusky wrote: »

Hey folks,

Looking for some advice.

In 2016 myself and two housemates rented out our rented accommodation on airbnb for 3 nights, earning about €1000. We never listed it again. The airbnb account was made in my name and the lease on the house was in my name. At the time we didn't realise that airbnb income was taxed. The €1000 was paid into my account and I then transferred €350 to each housemate (I have a bank statement to show this).

Fast forward to this week - I just received a letter from Revenue saying airbnb said I had taxable income from the site.

1/ Do I have to declare the full amount (€1000) or do I only need to declare the portion I received - €350?

2/ What can I write off - cost of cleaner? Rent for those 3 days?

All help appreciated.

Revenue will be after you if your name us on the Air BnB account.
You'll be taxed at your marginal rate plus USC and PRSI.

You can write off any costs associated with the letting.

You might want to get some of that money back from your housemates.

CIARAN_BOYLE

Declare the full amount, then declare the 700 you paid your rooms mates as an expense.

You can write off any costs you paid that are associated for the letting. I would not consider your own rent to be associated with the letting as it's your normal rent. You didn't specially rent a property for airb&b instead you rented it personally and happened to free time which you used for airb&b.

Given that the rent was the same the next month and the previous month and you did airb&b then you can hardly argue rental expenses are related to airb&b.

If you spent moneye on a cleaner you can claim it but if you cleaned the place yourself you have nothing to claim.

Tusky

CIARAN_BOYLE wrote: »

Declare the full amount, then declare the 700 you paid your rooms mates as an expense.

You can write off any costs you paid that are associated for the letting. I would not consider your own rent to be associated with  the letting as it's your normal rent. You didn't specially rent a property for airb&b instead you rented it personally and happened to free time which you used for airb&b.

Given that the rent was the same the next month and the previous month and you did airb&b then you can hardly argue rental expenses are related to airb&b.

If you spent moneye on a cleaner you can claim it but if you cleaned the place yourself you have nothing to claim.

Thanks for this. Would they not be suspicious if I claimed such a large expense - €700 out of income of  €1000?

gerard2210

Call into your local tax office and explain the situation, that fact it was a once off rental 2 years ago they might go easy on you.

Geuze

Tusky wrote: »

e.At the time we didn't realise that airbnb income was taxed.

A simple rule to follow is:

all income is taxable

CIARAN_BOYLE

Tusky wrote: »

Thanks for this. Would they not be suspicious if I claimed such a large expense - €700 out of income of  €1000?

yeah but you have the bank statement evidencing that you paid your roommates.then revenue will probably ask them to make returns but thats not your problem.

or you can ask your roommates to split the tax bill.

Tusky

So I either declare €1k and write €700 off as expenses OR declare full amount and chase old housemates for their share of tax.

Marcusm

CIARAN_BOYLE wrote: »

Declare the full amount, then declare the 700 you paid your rooms mates as an expense.

You can write off any costs you paid that are associated for the letting. I would not consider your own rent to be associated with the letting as it's your normal rent. You didn't specially rent a property for airb&b instead you rented it personally and happened to free time which you used for airb&b.

Given that the rent was the same the next month and the previous month and you did airb&b then you can hardly argue rental expenses are related to airb&b.

If you spent moneye on a cleaner you can claim it but if you cleaned the place yourself you have nothing to claim.

This is not a good idea; there is no deduction for payments to the housemates. You have to inform Revenue that you received 350 on your own account and 700 as nominee for your flat mates and provide their names/PPSNs. While this may seem overly formal, if you acknowledge the 1,000 as income in your own right you will be taxed on I without deductions.

Marcusm

Tusky wrote: »

So I either declare €1k and write €700 off as expenses OR declare full amount and chase old housemates for their share of tax.

Neither would be sensible.