All About the Airbnb 14-Day Tax Rule

If you are thinking about renting out your property and making some extra money but are worried it will cost you more than you will earn, then it is time to discuss taxes. No matter what is stopping you from renting out your property on Airbnb, there is a tax loophole that you need to know about.

The special 14-day rule will allow you the opportunity to not file taxes for your rental property. With this source of information in mind, you might not even need to report the income that you are making on Airbnb. This is the least you should know about Airbnb tax preparation and reporting.

Overview of the 14-Day Tax Rule

Tax rules are full of exceptions. But this exception is something you can refer to as a magical exception. To be precise, under this rule, you will not have to pay taxes on your income from short-term rentals. For this, you will have to meet a few conditions:

- You use the property as your residence for at least 14 days of the year

- You rent out the property for fewer than 15 days a year

There is also a drawback if you use this 14-day tax rule. It follows: if you happen to use this tax loophole, you will not be able to report or mention the expenses from renting out your place either. As such, you will not be able to reduce your taxable income in case of a rental loss.

This 14-day rule won't be applicable to someone who has a spare property and uses it as a rental regularly, but it is extremely helpful in other situations.

You can use this rule if you live in an area that hosts major events or attracts many tourists. It is one of the best Airbnb tax preparation tips that you can use to save some money. For more help with taxes, you can rely on the professional accountants from Agro Accounting CPA.