Airbnb general repair and maintenance

[Daniel13506]

I'm hosting in Nova Scotia, Canada and I was wondering if/how I can claim general repair and maintenance time when I do the work myself?  I have done most of our general fixups/upgades so far for my one short term airbnb rental property with my wife (partnership - not incorporated) and I really should be able to claim my work time as airbnb expenses - right?   Thanks - DJ

[Marie8425]

 @Daniel13506 

I suggested with taxes hire a tax accountant just if audited and you have been making n1 small mistake for 5 years the bill can be significant

Yes, it is worth it because if the owner performs any service that typically an outside company does for a fee that is considered a business expense.

[Mike-And-Jane0]

@Marie8425 and it must also count as income so what do you achieve?

[Marie8425]

@Mike-And-Jane0 

That is why an educated tax accountant.  If you have a handyman business that sells to other customers then you would bill your rental and yes income for your handyman business but them expenses in that business.  If you are performing labor strictly for your rentals then the IRS does not treat your labor in any means as a gift.  Your time is considered a business expense.

[Mike-And-Jane0]

@Daniel13506 wrong again. Even if you could it would be a zero sum game as you would pay tax on the handyman income

[Marie8425]

@Daniel13506 

I would get accurate information from a tax accountant a minor error in your taxes could result in a large tax bill  Something to treat very seriously

[Marie8425 · Accepted solution]

@Daniel13506 

FYI

Key Takeaways: Guide to Airbnb and Short Term Rental Tax Deductions

• The travel sector has been disrupted by Airbnb, which also offers rental property owners a successful business model.
• Depreciation, cost segregation, furnishings, cleaning/maintenance fees, marketing, home office deduction, commissions and fees, mortgage interest and insurance, and other indirect expenses are just a few of the tax deductions that Airbnb hosts may be eligible for.
• Using the Modified Accelerated Cost Recovery Method, depreciation enables property owners to write off the value of their assets over time (MACRS).
• By depreciating property improvements separately from the actual property, cost segregation studies assist property owners in lowering their tax liability.
• Property owners are able to write off company charges for things like office supplies, cleaning and maintenance fees, marketing costs, and home office costs.
• Tax deductions are available for Airbnb commissions and fees, as well as for most situations, mortgage interest, insurance premiums, and property taxes.
• Additional indirect costs, like rent, travel costs, utilities, and software subscriptions for property management, may also be deducted.
• To maximize deductions and guarantee compliance with regional tax laws, get advice from a tax professional.

[Daniel13506]

Thanks everyone for your replies ....it seems that I can't beat the taxes - in order to really make any extra money from airbnb'ing.  I can expense someone else to do the work or I pay taxes on the income when I do all the work .... no win scenario!