Taxes

Taxes

I am having trouble understanding this and hoping someone could help me out. When I started hosting I was informed that as long as I don't let anyone book my home for more than 14 days AT A TIME, then I don't have to claim my rentals on my taxes. I am trying to avoid including my rentals on my taxes and I have not let my home be book for more than 14 days at single time. Does this mean I don't have to include the rentals on my taxes or have I been misinformed? Also my rental is in North Carolina.

2 Replies 2
Susan151
Level 10
Somerville, MA

@Juliet80 In the United States, all income is taxable. I can't imagine why you might have thought otherwise. You will need to evaluate your circumstances to determine if you should file your taxes using a Schedule C or E, but you do need to pay taxes on your rental income.

 

p.s. If you only rent your house for less than 14 days per year, there is a tax-free loophole with caveats. Well there was. Not sure if this is still true with the new tax laws passed in the last year.

Linda108
Level 10
La Quinta, CA

@Juliet80   As posted by @Susan151 if you make money from any source there will probably be taxes.  Now what kind of taxes is what you as a business owner should be educated about.  Does the area your listing is located in have occupancy tax, sometimes called short term or hotel tax?  If so you should be paying those as well. Check with the city or county where your listing is located.

A couple of resources on this platform are  :Federal Income tax information composed by Ernst and Young, a large accounting firm.  Located in the Help Center.   Also, a list of municipalities (city, county, states) where Air BNB has an agreement to collect the occupancy tax.