Airbnb is a popular way of making some extra money. However, there are tax issues that arise from renting out your home or part of your home.
The ATO are targeting Airbnb hosts who are not declaring their income and not paying their fair share of tax.
Airbnb income needs to be declared in your tax return. However, you can also claim a portion of your property costs to offset your tax.
Examples of costs you can claim are rates, water, insurance, repairs, mortgage interest, phone, and internet. We suggest keeping all of your receipts in a safe place for 5 years from the date you lodge your e-tax return, just in case the ATO start asking questions.
You may also be liable to pay capital gains tax (CGT) when you sell your property, this can be tricky and its best to let one of our professional tax accountants help you work out the CGT involved.
So, if you are an Airbnb host and don’t want the ATO chasing you for unpaid tax, make sure you declare all of your income in your etax return.
Do your tax return right the first time with GoTax Online!
Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.
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