There are over 9,100 places to stay in Ireland today. And there’s a lot of demand for it. Since its launch in 2009, the app has been used by over 650,000 people looking for accommodation in Ireland. Every year, this has netted hosts an extra €2,700 in much-needed funds. In fact, nearly 60% of Irish hosts say the extra income has enabled them to remain in their homes.

However, if you are a host, keep in mind that any income you receive will be subject to tax. In short, Airbnb income is not eligible for rent-a-room relief, and you must file a tax return by October 31st each year.

Whether Revenue considers your earnings to be Case I ‘trading’ income or Case IV ‘miscellaneous’ income determines which form you must fill out.

If you have the following income, Revenue will most likely classify it as Case I trading.

  • You rent out the room or property at least six times a year.
  • If you host for 30 nights or more in a year
  • Your annual Airbnb income exceeds €5,000
  • The property is always available for occupancy

If your Airbnb income is classified as Case I ‘trading,’ you must first register with Revenue by filling out a TR 1 form. The following step is to file a Form 11 tax return every year. If your Airbnb income is less than €5000 in a year, you should fill out a Form 12 because the income is not coded into your tax credit. But it’s not all bad news. You can use a variety of deductibles to significantly reduce your Airbnb tax bill.

Nobody wants to go on vacation only to arrive at their hotel to find it to be a run-down shack. That’s an easy way to get a bad review. As a result, it’s in everyone’s best interest to make sure you cover all necessary maintenance costs in order to keep your property up to snuff for visitors.

The good news is that you can deduct repair and maintenance costs, such as those listed below:

  • Boiler maintenance
  • Repairing and replacing broken windows and locks
  • Providing new fixtures and fittings
  • Cleaning supplies were purchased.
  • Laundry Cost

Money is frequently transferred electronically between Airbnb guests and hosts. This service is tax-deductible if you prefer to receive cash and collect fees through an intermediary (for example, if you are a non-resident).

You can also deduct the service fees that Airbnb charges every host (currently set at 3% of the total reservation).

Your utilities, such as gas, electricity, television, and internet, can all be deducted on your tax return.

You can also deduct any costs incurred by the local government in relation to your rental property, such as garbage collection and recycling

Any money you spend on advertising a property you want to rent is fully deductible as an expense.

Any legal or accounting fees incurred as a result of letting out your Airbnb property can be deducted. For instance, if you paid for professional advice on Stamp Duty, you can claim it as a deduction.

Insurance is a significant cost that many Airbnb hosts are unaware of. In short, you have the right to claim expenses on any premiums you have had to pay if you have taken out any insurance policy relating to a rental property.

But keep in mind that if you rent out a room in your own home, you won’t be able to deduct the entire premium.

If you are paying interest on a mortgage taken out to buy or improve the property you have listed on Airbnb, you can also claim tax relief.

If you buy a house with the intention of renting it out, you’ll have to pay 1% Stamp Duty on any purchase up to €1,000,000 and a 2% balance on any purchase above that. It’s important to remember that Stamp Duty paid cannot be deducted from your Airbnb earnings.

Food is a very rare expense that can be deducted. If a business trip is necessary as a result of your Airbnb accommodations, you can deduct any related food expenses.

You can’t include these costs as an expense if you want to boost your accommodation by providing a free welcome basket of fruit to your guests.

Finally, if you are not a resident of your Airbnb listing, you will not be able to deduct any travel expenses to and from the property.

Do you have any concerns about your Airbnb income tax? TAS Consulting has a team of tax advisors on hand who are eager to assist you. Our self-assessed tax return service will ensure that you follow the Revenue guidelines to the letter. We can help you file your Airbnb tax return and make sure you’re getting all of the tax benefits that come with being an Airbnb host.

If you have any queries, or would like specific advice, then please do not hesitate to contact a member of our team.

call us on +353 (0)1 442 8230, 00353 851477625 or email moh@tasconsulting.ie