Well-known websites like Airbnb are encouraging some homeowners in Columbus to rent out all or a portion of their houses in order to make money. However, what are the tax implications of this?
Your income, how much of your house you rent out, and how often you make it available will all affect the tax implications of renting out your house. If you want to know how much taxes you are obliged to pay for renting out your home, contact a tax professional to know the tax services in Columbus.
Know the tax implications of renting out a portion of your home on Airbnb.
According to federal tax legislation, rental income is often taxable. However, there is a catch if you rent out a house that you live in and you do so for fewer than 15 days a year. The one exception is that neither rental revenue nor rental expenses are shown on your tax return. This allows a person to temporarily rent out their house without suffering any tax penalties.
Certain expenses, such as eligible mortgage rates, real estate taxes, and casualty losses that you would normally be able to claim as itemized deductions, are still deductible …