The Airbnb revolution is here.
This means you might be considering renting out a bedroom in your home with Airbnb, another company, or on your own.
Doing so could entitle you to some nice tax benefits. But be careful!
The IRS rules governing bedroom rentals are complex, and if you don’t handle everything correctly, your visiting guest could wind up being an IRS agent!
Want to stay on the right side of the law and get the best possible after-tax cash result?
Read my new article titled Secrets to Pocketing Cash by Renting a Bedroom in Your Home.
Three ways our fact-filled article can help you:
- We’ll tell you how the IRS treats your bedroom rental. Depending on the length of the rentals and the people to whom you rent, the tax code places your bedroom into one of five categories. It is vitally important that you learn which category your bedroom falls into. You’ll find out when you read the full article.
- We’ll explain why tax code Section 280A is so tremendously important. The first thing you should do if you’re considering renting out a bedroom(s) is check out Section 280A. It will tell you if your rental is tax free, or subject to/or exempted from Section 280. This is a complex subject that needs a comprehensive explanation, which is exactly what you’ll get when you read the full article.
- You’ll learn about other important issues as well. We’ll cover whether or not the IRS considers your rental activities a “hobby,” the impact of the passive-loss rule, three IRS-defined bedroom rental types, deducting losses, and lots more when you read the full article.