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Tax Tips to Maximize Your Airbnb Deductions With the ever-increasing popularity of Airbnb and other vacation rental portals, more and more people have begun to rent their homes and learn about the new set of tax issues that come with it. You can keep your income taxes low and sometimes eliminate them entirely when you offer your own home. The worst thing you can do during Airbnb tax preparation and reporting is sell yourself short. Follow these tips for making tax time a breeze by maximizing your deductions.
1. Get Tax Advice There is no denying that the tax process can be very complicated. You could owe various taxes on your short-term rental income, including net investment income tax, Social Security tax, and more. But if you hire a qualified tax professional, you can get personalized advice.
2. Tax-Free Short Term Rentals You have an opportunity to avoid paying taxes if you rent out your home only rarely. However, you are eligible for this exemption only when you pass the 14-day rule. That means you only rented your rental property for 14 days or less.
3.
Depreciate Your Property
In addition to business expense deductions, as the owner, you are allowed to depreciate your rental property. This process allows you to write off the cost of buying or improving your rental property. You can then factor it into your Airbnb deductions.
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Phone: (888) 247-6829 If you are a freelancer or an artist, you can also go through a detailed tax preparation guide for artists to get you well-acquainted with the deduction optimizing process.
Agro Accounting CPA Phone: (888) 247-6829 Email: basil@agroaccounting.com Address: 42 West Street, Brooklyn, New York 11222 Facebook: https://www.facebook.com/AgroAccountingforartists Instagram: https://www.instagram.com/agroartaccounting Twitter: https://twitter.com/art_accounting
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