You can't beat the tax man
When I first signed up for airbnb they did not ask me for my SSN. It didn't occur to me that I would have to pay tax on the money I was making. Stupid I know. Then in December they sent me a request for my SSN so they could send me tax documents, I was like "oh no". (Actually my language was a little more corolful than that.)
I had made just over $7,000 and I hadn't been keeping track of my expenses. I had to dig through receipts, to pull it together, to be able to do my taxes.
The next year I made just under $24,000 on airbnb. I had tracked everything. I still had to pay taxes on the money, but a lot less tax than I would have had to pay if I had not been tracking every penny I spent.
There are lots of things you can write off when using your home for a business.
You can write off part of:
- Your mortgage
- Your utilities
- Any supplies you buy: Including things like toilet paper, cleaning supplies, coffee (anything that you need to keep your house going or things that you are offering to your guests)
- Laundry costs
- Work that you have done on the house or yard
- Tools that you buy to make repairs on your house or yard
- Gas for your car so you can buy things for your bnb Ect ect ect.
Of course i'm not a tax person, and you should consult with a tax person when taking write offs. I certainly do. I think taxes have been purposely too hard for normal people to do them. The tax laws change so much that it takes a professional to keep up on them. But that is a rant for another day.
I'm Colleen, and I've been doing Airbnb for over 2 years. There are guests that I have loved and guests that I just can't wait to get out of my house. I've learned a lot from trial and error. It's a great way to earn extra income and I'm here to share my experience so I can help others make some great passive income.
Contact me if you want to hire me to help you set up your BnB!