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James says: 11 July 2023 at 16:00 I know that the interest on a bond is tax deductible in the case of an Airbnb. I was wondering if the rental of a property is also tax deductible if you use the arbitrage Airbnb method, i.e. subletting a fixed-term rental as an Airbnb? Another question, what if the property is not my own, I am renting it from someone and subletting it. Is the rental expense that I pay, a deductible expense of operating the Airbnb business? I know you have tiers of packages. How much do you charge to do the income tax of individuals that include the rental income? Also, is that a deductible accounting expense? |
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TaxTim says: 12 July 2023 at 12:28 Yes, if you own the property, you can claim the interest on the bond against the rental income earned on the property. If you however do not own the property, you can only claim expenses you personally incurred. Such as expenses you incurred against the Airbnb upkeep, payments you made to the owner while you were generating the Airbnb income, etc. This means that the owner of the property would declare the rental income you pay them on their personal income tax return and then claim the interest on the bond, repairs, maintenance, insurance etc. You can then declare the Airbnb income on your tax return as rental income and claim expenses against the Airbnb income such as advertising fees, agent fees, the rental you paid while you had Airbnb tenants in the property, and any other related expenses. You will require our ULTRA package, please refer to our Pricing Page. You will also need to submit provisional tax returns during the tax year (Provisional Tax Guide) And lastly, yes, you can claim our fee as a deduction. |
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