Money Doesn’t Come Without Guidance ...
Airbnb is one of the most popular ways of making an income which offers a great opportunity to rent out spare room without the long term commitment. Airbnb hosts are the people who rent out their spare room, apartment, house or space to earn some extra income by listing the place as Airbnb. But some Airbnb hosts may not understand the effects and benefits while it comes to the tax time. They forget the thing that earning extra income means extra taxes to pay at year end.
Renting a room out of existing property means, earning some extra amount for which Airbnb host has to pay tax. Airbnb hosts who offer their property for short-term rental are subject to the income tax rules for residential rental property. Airbnb hosts don’t need to pay GST on amounts of residential rent they earn rather they have to declare the income as assessable income in their tax return as Airbnb hosts earn from residential property but if they provide accommodation like a hotel they need to pay GST.
Airbnb host can claim following expenses for the percentage of the area of his/her house that was rented for the duration someone was paying:
To claim for deductions, it’s better to keep receipts and notes of expenses related to Airbnb rent income for future reference.
If you are lodging your tax return online by your own, you may not claim all your expenses properly or you may not claim all the possible expenses for deduction. To claim all your expenses, you may take help from a tax agent (like taxshark.com.au) about how to properly claim all of your expenses so you make the most of those Airbnb tax deductions.
TaxShark are Australia's leading tax accountants, offering expert advice for income tax returns, refunds and more on Airbnb tax lodgement.