Now that you know how to rent or sub-leave your accommodation, it is important to know how to declare your Airbnb income in order to avoid debris with the IRS.
Like the income generated by the delivery of home meals, carpooling via Blablacar or Uber or any other activity related to the collaborative economy, the income from rental or rental sublocation on Airbnb are subject to taxation. However, how should your income be reported? What percentages will be captured by the tax? Why would you report his income? We offer you a comprehensive guide on tax related to rental activities on Airbnb .
Why report Airbnb's income?
Responding to this question would be to answer the crucial question that all those who at the end of the month or year settle their taxes. Just like income tax or import tax (duty), the tax collected on Airbnb activities is used to finance the operation of the State. Ensure the proper conduct of the administration policy, and improve the lives of people.
And you have to say things as they are. We pay taxes to be in good standing. Avoid finding yourself in beautiful sheets with the trust that has almost all powers.
Airbnb revenues: when should they be declared?
The legislation considers two types of revenue related to the collaborative economy. For example, income from a collaborative activity and dedicated to co-consumption (for example, shared cultural sources) does not need to be declared. They aim to share fees between individuals and not to generate a profit.
On the other hand, the rental of furnished apartments, which is simply the provision of accommodation to an individual via a monetary compensation, is subject to the payment of taxes. As soon as you rent or sub-leave your accommodation on Airbnb, you will have to report to the tax. However, what to declare and how to do it?
Airbnb revenues: what to declare and how?
Revenues from Airbnb activities are subject to the tax system of the furnished rental. They are therefore declared as an industrial and commercial benefit (BIC). Basically, any income greater than 760 euros/year and arising from the rental or sub-location of its main residence is subject to taxation. For secondary residence this amount is 305 euros/year.
The tax return is all the easier. Simply indicate in box 5ND (or 50D for the spouse) of the form 2042C or supplementary income tax return the total of rents collected on Airbnb. The IRS will do the necessary slaughter.
To have this option on your Form 2042C, you must first check the box "income of non-professional furnished rentals" at step 3 when applying for form on impots.gouv.fr
What revenues can not be reported?
In general, any income from a collaborative activity must be reported. In the case of Airbnb rentals and sub-locations, revenues generated by a principal residence are as taxable as those from a secondary residence.
However, only the very small amounts are not subject to tax by the tax. This is an annual rental or sub-locative income not exceeding 760 euros for a main residence, and 305 euros for a secondary school.
Our advice to avoid problems
Whether it’s a short-term rental or a full-time activity, we recommend from the moment you start renting or renting your accommodation, having these two reflexes:
- #1. Record as the number of days the housing is occupied by an individual from Airbnb,
- #2. Keep proof of communications with your host, as well as traces of the rates on your accommodation.
Changes in 2019
As of January 1, 2019 collaborative platforms such as Airbnb or Uber to name only those two, will be required to provide the Tax Administration with information on amounts collected by their users.
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