Tax Time

Matthew1646
Level 1
Gettysburg, PA

Tax Time

Hey all,

I started air bnbing my personal home in April. I've found great success as I live in a very historical town. I've had 26 bookings since April so needless to say I've barely been in my home on a weekend. I've found that 99% of my guests have left my home in great shape, followed rules, etc. Despite pushback from set of neighbors who do not like the fact I'm renting my place out, I have thoroughly enjoyed the experience.

 

My question is what is this going to look like at tax time. I'm worried I'm going to owe a ton to federal taxes because it's a 1099 and federal taxes are not deducted up front. I have a decent regular job and this has been tremendous extra income for me. What should I expect at tax time? What can I deduct. Like I said own the home and use it as my primary residence. I'd say by the end of the year, I will have rented it out about 50-60 days if this helps at all with figuring anything out. 

 

Any advice, tips, ideas of what I should be prepared for would be welcome.

 

Thank you

2 Replies 2
Fred13
Level 10
Placencia, Belize

Conceptually, STRenting is 'self employment' that means is not just an open & shut salary per se and thus lends itself to different deductions, and that is when it gets 'interesting'. The more one learns what those are, the better.

Andrew0
Level 10
Berlin, Germany

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