Airbnb Tax Returns

There are many ways to turn your available assets to a profit generating unit. Airbnb is one of the most popular sharing economy websites helping property owners and investors to earn some extra income without paying too much set-up fees, administration fees and other complicated registration expenses. Airbnb only charges hosts a 3% service fee on each reservation which is booked on its website.

Either you are a house owner and want to make some extra cash for your holiday trip or you are an apartment renter and want to reduce your rent. Good news is that GST does not apply to residential rent.

However, the rental income is still assessable income and income tax is applied to all Airbnb rental earnings. It is strongly advised that all rental income should be recorded and declared to the ATO. If you do not declare your Airbnb income, the ATO can figure out as your Airbnb transactions are recorded online and there is evidence of the intention to make profit from your property. There are expenses Airbnb hosts can claim for deduction:

  • Any fees and charges relating to the sharing economy services
  • The property administration fees
  • Council rates
  • Interest on loan
  • Electricity and gas
  • Property insurance
  • Cleaning and maintenance costs
  • Fees and commission charged by Authorities

It is important to keep in mind that the deduction amount is apportioned according to the actual amount of time and proportion of property that were used for making a profit. This is sometimes an issue as the calculation is complicated and records of transactions are not correctly stored.

There are quite a few FAQ’s we have developed, generally asked by Airbnb hosts for their tax returns, some of them are mentioned below:

  • Can rent paid be deductible?
  • Can installations such as TV, Air-conditioning unit and other electronics be claimed and apportioned?
  • Can plant purchases be claimed?
  • We installed a new floor, can this be claimed?
  • I have a mortgage; can I claim a portion of this?
  • How does CGT apply to our situation?
  • Would I be considered to be a business owner or a property investor, if I rent the whole property as a part of Airbnb trade?

We understand that there could be a myriad of other questions you may have pertaining Airbnb tax returns.  It would be peaceful to know that we at A One Accountants can assist you in the preparation and lodgement of Airbnb related tax returns.

For property owners, renting out a part of their property can give rise to CGT consequences if you decide to sell the property in the future.

Questions about Airbnb income tax can be complex and require a profound tax understanding. We have prepared numerous amounts of tax returns which have included Airbnb and similar sharing economy tax returns to understand the requirements of what can be and cannot be claimed.

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