Airbnb taxes are hard, so is being an Airbnb host. Checkout Hurdlr's free Airbnb Tax Deductions Checklist!
Hurdlr's Accountant-in-Residence (AIR), Matt Briefer, CPA, has written an in depth, 21 page quick tax guide to help you maximize your Airbnb tax deductions and get your taxes done.
To give you a preview of what's in the guide, here's a tax checklist you can use to ensure you have the right host-related information for your tax software or tax preparer:
HOW HURDLR WORKS FOR AIRBNB HOSTS
Airbnb Hosts Quick Tax Checklist
❏ Calculate the number of days each month that you used your property for personal use and for rental use. This will determine the tax treatment of your rental and help you calculate your deductions.
❏ Add up your total operating costs (utilities, insurance, food for guests, etc.) you incurred each month during the year so you can calculate your deductions. If you took our advice on keeping information in real time, this should already be done!
❏ If you own your home, add up your total “homeowner” costs (mortgage interest, real estate taxes, etc.) you incurred each month during the year so you can calculate your rental deductions. If available, use supporting documents like the 1098 you received from your mortgage lender to make this step a breeze.
❏ Tally your assets. To the extent not detailed on your balance sheet, compile a list of the improvements you made to your rental property during the year, and make sure to include the price of improvements and dates put in use.
❏ Gather your property information (address, type). Make sure you have the information about your property that you will need if you are required to complete Schedule E, including the physical address of each property you rent and the property type (single family residence, multi-family residence, short-term rental, etc.) of each rental.
❏ Hold on to that 1099 from Airbnb (or VRBO, HomeAway); you’ll need it so you know how much income to report on your Schedule C or Schedule E.
❏ Export key statements. If you use accounting software to track your rental revenues and expenses, export your profit and loss statement and trial balance to excel or directly into your tax software. This information will also be used to populate your Schedule C or Schedule E. With an app like Hurdlr, a few taps on your smart-phone will generate these.
❏ Get Hurdlr. Wouldn’t it be great if there was an app that simplified this for you? There is - it’s called Hurdlr, and it allows you to easily track and manage your finances from anywhere, any- time on your phone.
For a complete checklist of what you will need to complete your individual tax return, refer to your local CPA, H&R Block or tax software for guidance.
Hosting is a complex topic. Our explanations are only high-level summaries, and actual practice may differ from our explanations – there is just too much to cover. Your tax preparer will be able to clarify the distinctions for you specifically.
Check out our webinar on Airbnb taxes and your hosting 1099 or our webinar with one of our favorite influencers, Jasper Ribbers to discuss Airbnb hosting tips.
Tap the bonus section below to download the Airbnb Taxes Guide for Hosts + this checklist.
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If you’re looking to help someone out and make some quick cash, then this section is for you. These companies function as automatic lead generators: instead of finding gigs by yourself, these companies give you the gigs. If you enjoy working with people and assisting them with their problems, many of the companies listed allow you to do just that.
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Rideshare Companies With Jobs Like Uber
As an independent contractor, driving for an on demand economy company gives you the ability make money with your extra time. Drive during your lunch break, at night, or during busy weekends – it’s up to you. However, these companies don’t only provide taxi-style services; companies like HopSkipDrive enable the driver to chauffeur kids to their activities around town, similar to a nanny. Other rideshare companies allow the individual to use their vehicle to make extra cash by renting it out or sharing a ride to work. If you have a car, then there’s an on demand economy opportunity out there for you.
Sites Like Airbnb
Make money off renting out your home, car, boat, tools, or almost anything with these sites like Airbnb. If you are out of town, make money while you are away. If you have free space in a home you live in, you can leverage that too. You can also choose specifically who you would like to rent to – say, a college sports fan. Check these hosting companies out below.
Delivery Jobs Like Postmates
Delivery jobs vary in their specific functions, but they all allow independent contractors like yourself to travel, create a flexible schedule, and deliver goods (as opposed to passengers). Jobs like Postmates give you the ability to work short gigs during times like your lunch break or at night, while others like Roadie allow you to use space in your car for somewhere you are already going to deliver a package.
Unskilled On Demand Jobs
If you’re looking to help someone out and make some quick cash, then this section is for you. These companies function as automatic lead generators: instead of finding gigs by yourself, these companies give you the gigs. If you enjoy working with people and assisting them with their problems, many of the companies listed allow you to do just that.
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Freelancing allows individuals to work wherever they want, whenever they want, with whoever they want. Freelance occupations range from bloggers, lawyers, chefs, stylits, caregivers, techies, and many more. If you like the freedom to travel and be your own boss, check out the companies below.