Taxes

[Debra7]

Hi, I live in Sydney, Australia. I have been hosting guests for the past year and would like to know if the income needs to be declared. I will see my accountant soon to discuss this issue. Thought I would put it out there and if anyone can answer this question. Do we pay tax with Airbnb income?

[Sandra126]

Absolutely! It is income, hence it needs to be declared.

[Jacki0]

I am very interested to hear the factual info on this and would love to be able to get an expert opinion. My tax accountant has told me for some years that it will open a can of worms if I declare the small amount of income I earn from a few bookings per year . She advises that if I do declare the income , I can then start claiming rental expenses in my return as if I was permanently renting my home , such as depreciation, payment to rental agent etc. Any advise would be appreciated .

[Sandra126]

I suggest you read this very professional advice:

https://community.airbnb.com/t5/Everything-Else/Is-it-even-worth-it-Taxation-treatment-of-in-home-ho...

[Jeeds0]

Fabulous @Sandra126 - thank you!!

[Jacki0]

Thank you!

[Jeeds0]

@Sandra126 is right - yes, you do. The ins and outs of it I can't really tell you as your situation might be different to mine, but talking with you accountant is a good step.

Airbnb is regulations are still catching up and I think there is still a lack of understanding/confusion out there - made worse by news articles trying to drum up fear about us (hosts) not paying tax, not being covered by insurance etc etc.

Your accountant isn't guaranteed to know everything I guess what I'm trying to say is be proactive and learn as much as you can as well, rather than just relying on someone elses opinion. 

[Anna396]

Dear Sandra,

Can I ask if Airbnb holds our Tax File Information? I dont think Airbnb asked me for it tho...If there a way to clirify that?

Thanks very much

Anna

[Louise47]

Yes you must declare it and remember everything you make is on Airbnb which the tax department can get a hold of.  So you can be caught if you don't claim.. The good thing is if you declare it you can claim a % of phone electricty matinence sheets, pillows, washing everything that you need to be able to do it.  When you sell your house/unit you will need to pay a small % on the room you rent out if you sell the house for more money then what you paid.... but only on the room not the whole house.. so yes it is worth declaring the money you make legally and financally.  Good luck with it.

[Julie580]

Re this Taxes issue does anyone know if Abnb provide a tax statement of earnings?

thanks

Julie