- Do you have any W-2 earnings or income beyond Airbnb in which you participate on a daily (or weekly basis)? For example, if you determine that your income from Airbnb is active and you also have W-2 earnings, you can net the two sources of income together. This can help lower your taxes.
- If you decided to purchase furniture for your Airbnb rental, you may determine that you will want to deduct that expense from your Airbnb income. If this creates a loss, will you then want to try to net this loss against gains in other income sources? This could potentially help reduce your overall taxes.
- Did you change jobs? Quit your job or get laid off? For some people, this might be a nightmare, but from a tax perspective there can be some huge tax savings involved. Its important to classify your Airbnb income appropriately to help lower your overall tax rate.
Overall, there are some serious tax savings available to you depending on how your classify your Airbnb income. To seek professional consultation to figure out how to save the most amount of money on your taxes, book me below and I’ll be happy to discuss this in more detail with you.