Spicer & Co’s Post

Do you rent out a property or a room in your own home? Did you know that since 1st January 2024, platforms such as Airbnb have been required to notify HMRC of your earnings? Although many landlords report their taxable income to HMRC, others do not and are therefore guilty of tax evasion. The good news is that if you live in the property and earn less than £7,500 a year from hosting on Airbnb, no tax is payable thanks to the Rent-a-Room scheme. If you earn more than £7,500 a year, you’ll need to declare it to HMRC by submitting a self assessment tax return, but you’ll only pay tax on the amount above £7,500. Get in touch if you would like an accountant to help with your individual rental situation. #accountants #airbnb #tax #rentaroom

Tax time: It is estimated around 4% of Australia’s housing stock is now used for Airbnb. The ATO has flagged they will pay extra attention those involved in the sharing economy as some may not be correctly declaring profits and gains. If you rent out one or more properties through Airbnb, you and your tax adviser may need to examine the rules carefully. In addition, a tax may soon be on the horizon for short-term letting accommodation in the future. If you need further advice on the implications of this and other taxation issues, contact Lisa Christo at NDA Law Pty Ltd. #taxtime #accounting #advisory #property #investments

☀️Holiday Home Dreams? ☀️ Make Sure You're Tax Compliant! If you’ve decided to rent out your property on platforms like Airbnb, it’s essential to understand the tax implications involved. A key aspect to consider is HMRC’s Digital Disclosure Service (DDS), which offers a way to rectify any overlooked tax matters. https://bit.ly/4eaSVWZ #DDS #HMRC #DigitalDisclosure

Maximize Your Rental Property Tax Savings! 🏠 Our client is on track to save $27,000 in taxes by placing their rental property into service as an Airbnb in 2024 and leveraging 60% bonus depreciation via a cost segregation study. But here’s the twist: if they wait until 2025 (assuming 100% bonus depreciation returns due to recent election results), they could save $45,000 instead! Would you take the sure $27K now or hold out for a potential $45K next year? Let’s hear your thoughts! If you’re exploring similar strategies, DM us for a free consultation. We’re here to help you make the right call for your financial future. #TaxStrategy #BonusDepreciation #RealEstateInvesting #AirbnbHost #RentalProperty #CostSegregation #TaxSavings #FinancialPlanning #RealEstateTax #EntrepreneurLife #TaxTips #CPA #WealthBuilding

Maximize your Airbnb earnings with these tax write-offs! 🏡💰 From property promotion to cleaning and maintenance, make sure you're taking advantage of all eligible deductions. #airbnbincome #taxwriteoffs #rentalproperty #realestateinvesting #propertymanagement #airbnbhost #TaxDeductions #taxdeductions2024 #ShortTermRentals #propertymaintenance #cleaningservices #FinancialTips #income #SmartInvesting #taxwriteoff #irs #profitsview

One thing I completely hate is when other tax pros say “that’s illegal” or “You can’t do that” without a proper research or fully understanding the tax code. I told a #realestateinvestor we need to do a cost segregation studies in your #shorttermrental and get a really nice tax savings. - He acquired and put in service the property in 2021. - His average stay is 7 days or less. Citation: Reg. Section 1.469-1T(e)(3)(ii)(A) - He materially participated and track his hours more than 100 hours than anyone else. Citation: Reg. Section 1.469-5T(a)(2) Your Airbnb unit is not a tax code–defined rental property because the average period of customer use of the unit is for seven days or less. Also, I have explained the consequences and depreciation recapture 😏 so it doesn’t bite him in ass in the future. New prospect went back to his old CPA to ask why he wasn’t aware of this…and the tax pro first reaction was “that’s illegal! You can’t do that” Obviously, I asked my client tell his former tax pro to provide citation for his statement. It has been almost 2 weeks and we haven’t heard anything back from the former tax pro. 🤷🏻♂️ #RealEstate #realestateinvesting #Airbnb

Avoiding unwanted #tax burdens as a short term or mid-term rental operator using an Airbnb/VRBO/Booking.com platforms has just gotten more complicated as the Canadian government introduced a range of new tax proposals in its latest budget and new enforcement actions against non-compliant hosts. Proposed in last year’s Fall Economic Statement, the measure stops those non-compliant hosts with local licensing registration requirements from deducting the related expenses when determining income taxes to pay to CRA. Our newest blog explores what a short- and mid-term rental operator/investor needs to know about the latest tax changes and incentives in light of the CRA’s new powers to address tax non-compliance in #realestate transactions. Check it out here https://bit.ly/3WqjrW3

Let’s Talk: Renting Out Your Home. When you rent out all or part of your residential house or unit through a digital platform, like Airbnb, Stays, Home Away or Flipkey, you: ✔️Need to keep records of all income earned and declare it in your income tax return ✔️Need to keep records of expenses you can claim as deductions ✔️Don't need to pay GST on amounts of residential rent you earn. If you are carrying on an enterprise renting out commercial residential premises, such as a commercial boarding house, you will have different income tax and GST obligations. Get in touch with us for more advice on renting out your home: 4297 0066. #AccountingProfessionals #APBusinessAdvisors #BusinessAdvice

If you’re thinking about buying a short-term rental with a partner, it’s important to understand the tax implications that come with it. While partnerships often work well—one person brings the money, the other finds the deal—material participation becomes a lot trickier when two people are involved. Short-term rentals offer significant tax benefits, like being able to offset your ordinary income with rental losses. For example, if you earn $100,000 from your business and lose $40,000 on your Airbnb, you’d only pay taxes on $60,000. However, the IRS has strict tests to determine if you materially participate in the property: 1️⃣ 500 hours of involvement in the rental 2️⃣ 100 hours and more than anyone else 3️⃣ Substantially all participation When you have a partner, meeting these thresholds becomes more difficult. Our advice:  - Make sure one partner qualifies for the tax benefit, or  - Consider using a grouping election if you both have other properties. It’s crucial to plan ahead for tax benefits when investing with a partner. Message us to learn more about how we can help you maximize your tax savings! #RealEstateInvesting #TaxStrategy #ShortTermRentals #BusinessPartnerships #TaxPlanning

Hey BC Airbnb Owners. Has your short term rental been kicked off Airbnb? What do you next? There could be tax implications. Call ZheroTax before you make your next move. We help businesses and individuals reduce their tax owing. #britishcolumbia #airbnb #shorttermrentals #CRA #taxes #taxreduction #taxowing #vancouver