Taxes, Insurance and Ads

[Daniel10544]

Im considering reporting my own taxes. Is it possible to deduct all my listing set up expenses whenever reporting?

And, has anyone used additional insurance such as insuraguest?

How effective is social media marketing?  What demographics interests would you select before running an ad? 

[Helen3]

1. I don't understand the question 

2. yes you need home insurance for short term lets

3. you can invest in social media marketing. It can be effective if you have a clear understanding of your demographic, well designed ads with a clear call to action 

[Lorna170 · Accepted solution]

@Daniel10544   

1.  You have to pay your taxes yourself unless AirBnB is collecting and remitting them.  Even if AirBnB is collecting and remitting the taxes in your jurisdiction, it behooves you to know what taxes are owed, to whom they are paid, and how to report your earnings and pay the taxes.  You may be required to send a zero tax due report even if AirBnB is paying them.  Talk to an accountant or your local tax authority for instructions on compliance.  

Expenses are recorded on a Federal Schedule E or C.  Again, talk to an accountant about compliance and help in determining what expenses can be deducted annually and how they reduce earned income.

2.  You need to have STR insurance.  Your ordinary property insurance generally does not cover property that is used as a vacation rental and may in fact be void if the company finds that you are renting the property as a vacation rental.  An independent agent may help you find the best policy.

3.  Social media can be very useful, but may also produce less than ideal guests that are cheap, looking for deep discounts, or are party-goers who will trash your place.  Whether or not you use social media may also depend on what your property is like and who your desired guests are.  Personally, I would use social media only after a period of time using platforms like AirBnB and learning how to vet your guests.  It is not always about heads-in-beds.

[Paula]

Hello @Daniel10544 and Welcome to our Community Center 😊.

It's great to hear that you're preparing for your hosting journey with all these tools! Thank you so much @Lorna170 and @Helen3 , for your helpful advice. 

Paula

[Helen744]

@Daniel10544 It is a good idea to read all the tax information and deductions available which should be downloadable from your local tax department.Most set up costs in Australia at least would be deductible on a schedule provided from a quantity surveyor. Pro rata over a number of years. Not up front . Some costs on the other hand 'costs of doing business' are deductible in whole every year also prorata. This is easily findable, also from the tax department, but most people if sensible simply save all reciepts and for generally a hundred dollars or a little more,they seek out a tax accountant once a year. Well worth every penny.If more than one person owns the home it is worth seeking out who will be recieving deductions or fees well before beginning to host... H