Income and Investments Tax Tips for Those Renting Their Home on Airbnb Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published May 13, 2024 2 min read Reviewed by Jotika Teli, CPA As Airbnb’s popularity continues to rise, more and more people are renting out their homes and learning about the tax implications that come with it. When you rent your home, or a room in your home, as a short-term rental, you may be able to keep your income taxes to a minimum and sometimes eliminate them entirely if you follow some of these useful tax tips. Table of Contents Learn About the 14-Day RuleKeep Records of Rental PeriodsDon't Worry if You Have to Prove You Have a Short Term Rental Learn About the 14-Day Rule The 14-day rule is very important for anyone considering renting out a personal residence. Under this rule, you don’t pay tax on income you earn from the short-term rental as long as you rent the property for no more than 14 days during the year AND use the home yourself 14 days or more during the year or at least 10% of the total days you rent it to others at a fair rental price. Keep Records of Rental Periods If you rent out your place for two weeks or less, keep track of both rental days and those days you used the residence yourself. If you rent for longer than the 14-day exception period, keep detailed records of the dates so you can separate what expenses are considered personal and what expenses are business. Keeping good records will help document your rental activity as a short-term vacation rental. Don’t Worry if You Have to Prove You Have a Short Term Rental The rule is simple: you don’t have to report rental income if you stay within the 14-day rule. However, because of reporting laws, companies like Airbnb, HomeAway, and VRBO may report to the IRS all income you receive from short-term rentals, even if you rent for less than two weeks. If this happens and you don’t include the income on your tax return, the IRS may ask you for information regarding your short-term rental. Don’t worry: your detailed records of your rental activity will show that your rental was a short-term rental. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed. Get started Previous Post Recent Grad? Here are Four Reasons to Start Saving Now… Next Post What Income is Taxable and Non-Taxable? Written by TurboTaxBlogTeam More from TurboTaxBlogTeam Leave a ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?